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The following information was taken from 2011 financial statement of Jones Corperation:Accounts Receiable, Jan 1, 2011 30,000Account receivable, Dec 31, 2011 40,000Sales (all credit sales) 480,000no account receivables were written off or recovered during the yearA. Determine the cash collected from customers by Jones Corperation in 2011?B. Comment on why cash collected from customers differed from sales?
SOLUTION:A) Cash collected from customer:ParticularsBeginning Accounts Receivable BalanceAdd: Credit Sales during the yearLess: Ending Accounts Receivable $30,000.00$480,000.00$40,000.00…
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