Determine the cash collected from customers
Not what you're looking for?
The following information was taken from the 2005 financial statement of the AB Corporation:
Accounts receivable, Jan 1, 2005 $30,000
Accounts receivable, Dec 31, 2005 $40,000
Sales ( all credit sales) $480,000
Note: No accounts receivable were written off or recovered during the year.
a) Determine the cash collected from customers by the AB Corporation in 2005
b) Comment on why cash collected from customers differed from sales.
Purchase this Solution
Solution Summary
This problem reveals how to determine what cash has been collected from customers.
Solution Preview
Opening accounts receivable = 30,000
Closing accounts receivable = 40,000
Sales = 480,000
They collected $470,000 from customers throughout the year. This number ...
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.