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    AB Corporation - Cash Collection

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    P10-14 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.

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    Solution Preview

    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 ...

    Solution Summary

    This solution explans how to calculate cash collection from customers, and why cash collected from customers differed from sales.
    .

    $2.19

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