The following selected account balances were taken fromBuckeye Company's general ledger at January 1, 2025 andDecember 31, 2025:Accounts payableAccounts receivableCommon stockInventoryJanuary 1$ 42,000$ 25,000$110,000Sales revenueCost of goods soldSalaries expenseNet income$ 25,000$ 60,000LandNotes payableRetained earningsSalaries payableBuckeye Company's 2025 income statement is given below:December 31$ 36,000$ 17,000$180,000$ 28,000$ 73,000$122,000$ 46,000$ 13,000$ 83,000$ 30,000$ 19,000$420,000$269,000$ 93,000$ 58,000Calculate the amount of cash collected from customers during2025.

Name: The following selected account balances were taken fromBuckeye Compan
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Description: The following selected account balances were taken fromBuckeye Company's general ledger at January 1, 2025 andDecember 31, 2025:Accounts payableAccounts receivableCommon stockInventoryJanuary 1$ 42,000$ 25,000$110,000Sales revenueCost of goods soldS

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following selected account balances were taken from
Buckeye Company's general ledger at January 1, 2025 and
December 31, 2025:
Accounts payable
Accounts receivable
Common stock
Inventory
January 1
$ 42,000
$ 25,000
$110,000
Sales revenue
Cost of goods sold
Salaries expense
Net income
$ 25,000
$ 60,000
Land
Notes payable
Retained earnings
Salaries payable
Buckeye Company's 2025 income statement is given below:
December 31
$ 36,000
$ 17,000
$180,000
$ 28,000
$ 73,000
$122,000
$ 46,000
$ 13,000
$ 83,000
$ 30,000
$ 19,000
$420,000
$269,000
$ 93,000
$ 58,000
Calculate the amount of cash collected from customers during
2025.

Expert Solution

Step 1

Calculation of cash collected from customers during 2025:

Accounts Receivable

Debit Credit

Date	Particulars	Amount	Date	Particulars	Amount
Jan 1	opening balance	25,000		*Amount collected*	428,000
	Sales	420,000	Dec 31	closing balance	17,000

	Total	445,000		Total	445,000

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