During the Year, Beta Corp

question 44

Multiple Choice

During the year, Beta Corp.reported $420,000 in cash sales and $2,800,000 in credit sales.Beginning Accounts Receivable was $470,000 and ending Accounts Receivable was $540,000.What was the total cash collected from all customers during the year?

• A)$2,680,000
• B)$2,870,000
• C)$2,730,000
• D)$3,150,000

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Definitions:

Orders to Pay

Instructions typically issued by a debtor authorizing their bank to pay a specified amount of money to a creditor on a certain date.

Certificate of Deposit

A Certificate of Deposit is a financial product offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to its customers.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer.