Asked by
Cristi Prado
on Dec 16, 2024Verified
During the year, Rinks Corp.reported $510,000 in cash sales and $2,350,000 in credit sales.Beginning Accounts Receivable was $360,000 and ending Accounts Receivable was $475,000.What was the total cash collected from all customers during the year?
A) $3,695,000
B) $2,975,000
C) $2,675,000
D) $2,745,000
Accounts Receivable
Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.
Credit Sales
Sales for which payment is not received at the time of purchase, allowing customers to pay at a later date, thereby creating receivables for the seller.
Cash Sales
Transactions where payment is made in cash at the time of purchase, without the extension of credit.
- Understand the consequences of working capital account fluctuations on cash liquidity.
Verified Answer
RH
Learning Objectives
- Understand the consequences of working capital account fluctuations on cash liquidity.