In: Accounting
The following accounts, among others, appeared on ZZ Company's balance sheet at January 1, 2020 and December 31, 2020: January 1, 2020 December 31, 2020 Accounts receivable 48,000 63,000 Utilities payable 20,000 26,000 Notes payable 71,000 80,000 Common stock 30,000 90,000 Retained earnings 22,000 78,000 The following information was taken from ZZ Company's 2020 income statement: Sales revenue $500,000 Cost of goods sold 280,000 Other expenses 120,000 Net income $100,000 Calculate the amount of cash collected from customers during 2020.
Calculation of cash collection from customer during 2020: | ||
Beginning accounts receivable | $ 48,000 | |
Add:Sales revenue during the year | $ 5,00,000 | |
Less:Ending accounts receivable | $ 63,000 | |
Cash collection from customer | $ 4,85,000 |