A firm reported accounts receivable at the end of the year of $120,000 (prior year balance $105,000).Sales during the year were $250,000 of which $180,000 was on credit. What is the amount of cash received from customers during the year? $70,000 $235,000 $165,000 $250,000

There are two types of Sales: (1) Cash Sales and (2) Credit Sales. Cash is received immediately at…

Answered: What is the amount of cash received…

Business

Accounting

What is the amount of cash received from customers during the year?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.17E

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Question

A firm reported accounts receivable at the end of the year of $120,000 (prior year balance $105,000).

Sales during the year were $250,000 of which $180,000 was on credit. What is the amount of cash received from customers during the year?

$70,000

$235,000

$165,000

$250,000

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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