ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers? (in millions)

the amount of cash received from customers is $97 million.

Explanation:

The cash received from customers can be determined by opening a Total Receivables T-Account.

Total Receivables T-Account

Debit :

Beginning Balance                                                        $6 million

Sales                                                                           $100 million

Totals                                                                          $106 million

Credit :

Ending Balance                                                             $9 million

Cash Received from Customers (Balancing figure)  $97 million

Totals                                                                          $106 million

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