The Balance in Accounts Receivable at the Beginning of the Year

question 65

Multiple Choice

The balance in Accounts Receivable at the beginning of the year amounted to $16,000.During the year,$64,000 of credit sales were made to customers.If the ending balance in Accounts Receivable amounted to $10,000,and uncollectible accounts expense amounted to $4,000,what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement?

• A)$66,000.
• B)$64,000.
• C)$80,000.
• D)None of these answers are correct.

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Definitions:

Lessee

A person or entity who holds the lease of a property; a tenant.

Merchant

A person or company involved in the trade of goods, services, or commodities for profit.

Sale

The passing of title from a seller to a buyer for a price.

Implied Warranty of Fitness

An assurance, typically not expressly stated, that a product will be suitable for its intended purpose.