D Question 4 45 pts The following selected account balances

D Question 4 4.5 pts The following selected account balances were taken fron Buckeye Company\'s general ledger at January 1, 2018 and December 31, 2018: January!,-2018 36,000 28,000 31,000 12,000 48,000 80,000 50,000 130,000 38,000 Accounts receivable 42,000 25,000 Inventory Accounts payable35,000 Salaries payable Investments Land Mortgage payable 100,000 Common stock Retained earnings 20,000 1,000 34,000 60,000 110,000 The following information was taken from Buckeye Company\'s 2018 income statement: Sales revenue Cost of goods sold Salaries expense Gain on sale of investments Net income $420,008 300,000 90,000 2,000 32,000 Calculate the amount of cash collected from customers during 2018.

Solution

Answer:

Cash Collected from Customer = Net Sales + Beginning Accounts Receivable – Ending Accounts Receivable
Cash Collected from Customer during 2018 = $420,000 + $42,000 - $36,000
Cash Collected from Customer during 2018 = $426,000