During the year, Omega Limited reported credit sales of $600,000.Beginning Accounts Receivable was $70,000 and ending Accounts Receivable was $160,000.What were the cash collections from customers during the year?

A) $830,000
B) $690,000
C) $510,000
D) $370,000

Question

Killian Carles · Accepted Answer

Final Answer : C, Explanation :  To calculate cash collections from customers, we start with credit sales and adjust for the change in accounts receivable. The formula is: Cash Collections = Credit Sales - Increase in Accounts Receivable. Here, the increase in Accounts Receivable is $160,000 (ending) - $70,000 (beginning) = $90,000. So, Cash Collections = $600,000 - $90,000 = $510,000.

During the year, Omega Limited reported credit sales of $600,000.Beginning Accounts Receivable was $70,000 and ending Accounts Receivable was $160,000.What were the cash collections from customers during the year?

A) $830,000
B) $690,000
C) $510,000
D) $370,000

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During the year, Omega Limited reported credit sales of $600,000.Beginning Accounts Receivable was $70,000 and ending Accounts Receivable was $160,000.What were the cash collections from customers during the year?A) $830,000B) $690,000C) $510,000D) $370,000

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Learning Objectives

Learning Objectives

Related questions

During the year, Omega Limited reported credit sales of $600,000.Beginning Accounts Receivable was $70,000 and ending Accounts Receivable was $160,000.What were the cash collections from customers during the year?

A) $830,000
B) $690,000
C) $510,000
D) $370,000