# Simple problem: how much cash was collected from customers? [closed]

Our professor posted this practice exam question, and I'm having trouble understanding why the answer key is correct:

The balance in Accounts Receivable was \$650,000 at the beginning of the year and \$350,000 at the end of the year. Sales for the year totaled \$4,100,000. How much cash was collected from customers during the period?

A) \$4,400,000

B) \$4,000,000

C) \$3,750,000

D) \$4,800,000

E) None of the above.

If sales totaled \$4.1m, then that figured is composed of the following:

• \$X of direct cash debits

• \$Y of accounts receivable

But my professor said we can just assume "sales for the year" is referring to accounts receivable, put the \$4.1m on the debit side of the Accounts Receivable T-chart, and then solve that way (getting A, \$4.4m). I don't quite understand why this works, as it seems to overlook key information about cash transactions.

• I'm voting to close this question as off-topic because Accounting homework questions appear off-topic based on money.stackexchange.com/help/on-topic – RonJohn Feb 2 '18 at 17:47
• To be fair, I classified it as homework, but it's an in-class practice exam that our instructor went over with us during lectures. It's just I didn't understand her explanation very well. – AleksandrH Feb 2 '18 at 22:11