Fitness Machines Reported Cash Sales of $50,000, Credit Sales of $800,000

question 61

Multiple Choice

Fitness Machines reported cash sales of $50,000, credit sales of $800,000 and bad debt expense of $150,000 for last year. Accounts receivable had a balance of $1,000,000 at the beginning of the year and $1,250,000 at the end of the year. Assuming there are no write-offs during the year, how much cash was collected from customers during the year?

• A)$400,000
• B)$450,000
• C)$550,000
• D)$600,000

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