Question

The following selected account balances were taken from ABC Company's general
ledgers for 2019:

                      January 1, 2019       December 31, 2019
  Inventory                  74,000                56,000
  Accounts payable           50,000                28,000
  Salaries payable            9,000                 4,000
  Investments                68,000                75,000
  Accounts receivable        69,000                35,000
  Land                       58,000                88,000
  Notes payable             195,000               120,000
  Unearned revenue           17,000                25,000
  Common stock              100,000               190,000
  Retained earnings          23,000                63,000

The following information was taken from ABC Company's 2019 income statement:

  Sales revenue                   $420,000
  Cost of goods sold               300,000
  Salaries expense                  68,000
  Net income                      $ 52,000

Calculate the amount of cash collected from customers during 2019.

Answer 1

solution sales revenue 420000 Adds Accounts receivable In 2019 69000 Less: Accounts oreceivable, Dec 31, 2019 -35000 Cash collected from Customers | 454000