A company's 2019 income statement reported total sales revenue of $1,200,000;accounts receivable increased by $25,000 and the unearned sales revenue account decreased $15,000 during 2019.How much cash was collected from customers during 2019?

A) $1,225,000.
B) $1,160,000.
C) $1,175,000.
D) $1,185,000.

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Eduardo De Paz · Accepted Answer

Final Answer : B, Explanation :  To calculate the cash collected from customers during 2019, we need to adjust the reported sales revenue for the change in accounts receivable and unearned sales revenue.Adjusted sales revenue = total sales revenue + decrease in unearned sales revenue - increase in accounts receivable= $1,200,000 - $15,000 - $25,000= $1,160,000Therefore, the cash collected from customers during 2019 was $1,160,000. The correct answer is B.

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A company's 2019 income statement reported total sales revenue of $1,200,000;accounts receivable increased by $25,000 and the unearned sales revenue account decreased $15,000 during 2019.How much cash was collected from customers during 2019?A) $1,225,000.B) $1,160,000.C) $1,175,000.D) $1,185,000.

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