At January 1, 2020, Culver Inc. had accounts receivable of $69,000. At December 31, 2020, accounts receivable is $54,000. Sales revenue for 2020 total $422,000. Compute Culver’s 2020 cash receipts from customers. Cash receipts from customers

$437,000

Explanation:

The account receivables balance represents the amount yet to be collected from customers after revenue has been earned. The balance in this account increases when revenue is earned and reduces when cash is collected.

Given that At January 1, 2020, Culver Inc. had accounts receivable of $69,000. At December 31, 2020, accounts receivable is $54,000. Sales revenue for 2020 total $422,000

Let the cash collected be u

$69,000 + $422,000 - u = $54,000

u = $69,000 + $422,000 - $54,000

u = $437,000

Cash receipts from customers is $437,000

answer; synthetic production system;