During Its First Year of Business,Gnu,Inc

question 254

Multiple Choice

During its first year of business,Gnu,Inc.sold $200,000 of merchandise to customers on account.At the end of the year Gnu,Inc.had accounts receivable of $40,000.How much cash did the company collect from credit customers during the year?

• A)$200,000
• B)$240,000
• C)$160,000
• D)$40,000

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Definitions:

Internet Transactions

Commercial or financial transactions conducted electronically on the internet.

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Offer

A tentative promise to do something if another party consents to do what the first party requests.

Telephone

A telecommunications device that allows two or more users to conduct a conversation when they are too far apart to be heard directly.