Question 175351: Can someone please help me with this problem.
A company began the accounting period with $13,500 in accounts receivable. The ending balance in accounts receivable was $5,000. If the credit sales during the period were $22,000, what is the amount of cash received from customers?
a. $13,500
b. $22,000
c. $30,500
d. $40,500
Answer by gonzo(654)   (Show Source):
You can put this solution on YOUR website! i'm not an accounting student but i would say that the amount of cash received would be 30,500.
here's why:
AR1 = accounts receivable at the start.
AR2 = accounts receivable at the finish.
C = cash
CRS = credit sales
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general formula should be:
AR2 = AR1 + CRS - C
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AR1 = 13,500
AR2 = 5,000
CRS = 22,000
C = unknown at this time.
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substituting in the formula, we get:
5,000 = 13,500 + 22,000 - C
combining like terms we get:
5,000 = 35,500 - C
adding C to both sides of the equation we get:
C + 5,000 = 35,500
subtracting 5,000 from both sides we get:
C = 35,500 - 5,000 = 30,500
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looks like cash = $30,500
that would be answer c.
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