Daniels Company Reported Sales of $800,000, Bad Debt Expense of $30,000

question 28

Multiple Choice

Daniels Company reported sales of $800,000, bad debt expense of $30,000, and an increase in net accounts receivable of $120,000 during the current year. What is the amount of cash collected from customers for the current year if the company did not record any write-offs during the current year?

• A) $650,000
• B) $680,000
• C) $710,000
• D) $800,000

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Definitions:

Freddie Mac

A public government-sponsored enterprise (GSE) that operates in the secondary mortgage market to increase the availability and affordability of home loans.

Fannie Mae

A government-sponsored enterprise established to expand the secondary mortgage market by making mortgages more accessible and affordable.

Federal Reserve's Monetary

Actions by the Federal Reserve to control the money supply and interest rates in an effort to regulate the economy.

Real Output

The quantity of goods and services produced, adjusted for inflation, reflecting the true productivity of an economy.