Using the following information, compute cash collected from customers. Write the dollar amount of your answer. (Do not write the dollar sign.)
Sales $8,000
Cost of goods sold 5,800
Operating expenses 800
End of Year Beginning of Year
Prepaid operating expenses $100 $700
Accounts payable 1,350 1,200
Inventory 500 2,100
Accounts receivable 800 1,200
Cash Collected from Customers :
Opening Accounts Receivables = $ 80
Add : Sales = $ 8,000
Less : Ending Accounts Receivables = $ 1,200
Collections received from Customers = $ 7,600.
Amount Collected from Customers = Cash received from the Customers is calculated by assuming that all the sales are made on credit.
Opening Accounts Receivables = $ 800. Since, sales of $ 8,000 are made, total amount to be received = $ 8,800. It has been said that ending accounts receivables = $ 1,200, which implies that total amount to be received is $ 7,600.
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