Question

Tanner Service Company reported an annual sales revenue of $560,000 in 2019. During the year, accounts receivable decreased from a $22,500 beginning balance to an $18,800 ending balance. Accounts payable decreased from a $15,200 beginning balance to a $13,600 ending balance. Assume that all sales were made on account. How much is cash received from customers for the year

Answer 1

Answer:

$563,700

Explanation:

Calculation of cash is as seen below.

Sales revenue. $560,000

Add: Decrease in accounts receivable ($22,500 - $18,800) $3,700

Cash received from customers. $563,700.

Note: other information given in the question are not relevant for the computation of cash received from customers for the year.

Therefore, cash received from customers for the year is $563,700