Asked by Maegan Neuman on Jul 16, 2024
Verified
If $38,000 was generated in sales and there was an increase to Accounts Receivable of $3,100, what would be the cash amount received from customers?
A) $38,000
B) $3,100
C) $34,900
D) $41,100
Accounts Receivable
Money owed to a business by its clients for goods or services that have been delivered or sold but not yet paid for.
Cash Amount
The total value of cash on hand or in bank accounts, easily accessible for immediate use by the business.
- Calculating and analyzing cash payments and receipts using the direct method across numerous accounts, specifically operating expenses, salaries, merchandise inventory, and insurance.
- Investigation into the effects of fluctuations in working capital accounts, specifically Prepaid Expenses, Salaries Payable, Accounts Receivable, Inventories, and Accounts Payable, on cash flow dynamics.
Verified Answer
TT
TH?CH Tr??ng B?oJul 21, 2024
Final Answer :
C
Explanation :
The cash amount received from customers is calculated by subtracting the increase in Accounts Receivable from the total sales. Therefore, $38,000 - $3,100 = $34,900.
Learning Objectives
- Calculating and analyzing cash payments and receipts using the direct method across numerous accounts, specifically operating expenses, salaries, merchandise inventory, and insurance.
- Investigation into the effects of fluctuations in working capital accounts, specifically Prepaid Expenses, Salaries Payable, Accounts Receivable, Inventories, and Accounts Payable, on cash flow dynamics.
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