The Jones company had a net receivable balance at the beginning of 1998 of $350,000 and ended 1998 with a receivable balance of $400,000. During the year the company had credit sales of $1,000,000 and cash sales of $200,000. How much cash did the company collect during 1998?
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A. B. C. D.C
During the year the company sold $1,200,000 of goods or services. However, receivables increased by $50,000, which decreases the change in cash during the year. Therefore the change in cash, or the cash collected during the year was $1,050,000.