Answer:
Total cash receipts is $24,200. This is not given as an option.
Explanation:
The accounts receivable balance represents the balance from sales yet to be settled by the customer. Interest receivable is the interest yet to be received from investment.
Given that for 2019:
Sales​ Revenue = $40,000
Interest​ Revenue = $700
Accounts​ Receivable(beginning​ balance) = $13,500
Accounts​ Receivable (ending​ balance) = $30,000
There were no amounts reported for Interest Receivable.
Since there is an Accounts receivable balance at the end of the year, it means that not all revenue was collected from customers. Similarly, since the interest receivables ending balance is nil, all the interest was collected.
Let the cash collected from sales to customers be t
As such,
$13,500 + $40,000 - t = $30,000
t = $13,500 + $40,000 - $30,000
t = $23,500
Total cash receipt = $23,500 + $700 Â = $24,200
