The Balance in Accounts Receivable at the Beginning of the Year

question 106

Multiple Choice

The balance in Accounts Receivable at the beginning of the year amounted to $3,040. During the year, $9,880 of credit sales were made to customers. If the ending balance in Accounts Receivable amounted to $1,980, and uncollectible accounts expense amounted to $840, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement?

• A)$10,100
• B)$9,880
• C)$12,920
• D)$10,940

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Definitions:

Natural Resource

Assets derived from the earth, such as minerals, forests, and water, which are used to produce goods and services.

Depletion Expense

The allocation of the cost of natural resources over their useful life, representing the exhaustion of mineral, oil, or gas deposits.

Mineral Deposit

A naturally occurring accumulation of minerals that can be extracted for economic benefit.

Journalize

The act of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.