Question

The following information was taken from the 2017 financial statements of Planet Corporation:

Accounts receivable, January 1, 2017 $21,600
Accounts receivable, December 31, 2017 30,400
Sales on accounts and cash sales 438,000

Required:
Determine the cash collected from customers by Planet Corporation in 2017.

Answer 1

Answer:

$429,200

Explanation:

Considering the above information, cash collected from customers by Planet Corporation in 2017 would be;

= Accounts receivable January 1, 2017 + Sales on accounts and cash sales - Accounts receivables January 31, 2017

= $21,600 + $438,000 - $30,400

= $429,200