Using the direct method, cash received from customers is calculated as sales:
A. Plus an increase in allowance for uncollectible accounts.
B. Minus an increase in allowance for uncollectible accounts.
C. Plus an increase in accounts receivable.
D. Plus a decrease in accounts receivable.
Answer:D
Using the direct method, cash received from customers is calculated as sales:
A. Plus an increase in allowance for uncollectible accounts. B. Minus an increase in allowance for uncollectible accounts. C. Plus an increase in accounts receivable. D. Plus a decrease in accounts receivable.