Question

Holmes Furniture Center had accounts receivable of $ 23 comma 000 at the beginning of the year and $ 59 comma 000 at​ year-end. Revenue for the year totaled $ 112 comma 000. How much cash did the business collect from​ customers?

Answer 1

The amount of cash that business collected from the customers is $76,000.

Step-by-step explanation:

Formula used for taking out the cash collected by business -

Accounts receivables at the beginning of the period

+

Revenue collected in the year

-

Accounts receivables at the end of the period

Given information -

Accounts receivables at the beginning of the period = $23,000

Revenue collected in the year = $112,000

Accounts receivables at the end of the period = $59,000

Cash collected = $23,000 + $112,000 - $59,000

= $76,000