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Malibu Company went into business in 2019 and in that year, its total sales were $62,000. At the end of 2019, Malibu had a balance in accounts receivable of $4,000 and a balance in unearned revenue of $1,000. How much did Malibu receive in cash during 2019

Respuesta :

Answer: $59,000

Explanation:

Total Revenue = $62,000, accounts receivable = $4,000,

unearned revenue = $1,000

accounts receivable refers to money owed a business by its customers for services rendered

unearned revenue refers to money given a business by its customers for services yet to be fully rendered i.e. a contract of 6 months in which the customers paid fully upfront

amount received in cash = Total Revenue - accounts receivable + unearned revenue

amount received in cash = 62000 - 4000 + 1000 = $59,000

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