Question

Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account. Revenues for the period amounted to $38,000. Under the direct method, Gaulle will report cash collected from customers of:

Answer 1

Answer:

$35,000

Explanation:

Data provided in the question:

Accounts Receivable at the start of the year = $6,000

Accounts Receivable at the end of the year = $9,000

Revenues for the period = $38,000

Now,

cash collected from the customers

= Beginning balance + Revenue for the year - Ending balance of account receivable

= $6,000 + $38,000 - $9,000

= $35,000