Question

In 2021, Hope Company incurred sales on account of $139,000. The company also has the following information: December 31, 2021 December 31, 2020 Accounts Receivable $ 25,000 $ 64,000 Accounts Payable $ 69,000 $ 49,000 What is the amount of cash received from customers for Hope Company in 2021? Multiple Choice $115,000 $139,000 $143,400 $178,000

Answer 1

Answer:

$178,000

Explanation:

Cash received from customers:

Sales on account                         139,000

Beginning Account Receivable    64,000

Total amount to be collected     203,000

Ending Account Receivable         (25,000)

Received from customer             178,000

The beginning AR and the sales on account are all the cash we can collect for the period from our customer.

The ending AR is the amount not collected from. If we had collected all the ending account receivable should be zero. It has an ending balance, so some account weren't collected. We will subtract them from the total sales to be collected.

The account payable: Refers to debt form the firm to his suppliers. It has no relationship with the customer. Is irrelevant.