A Retailer Is Paid Cash by Its Customers but Pays

Multiple Choice

A retailer is paid cash by its customers but pays its suppliers very regularly but no sooner than 60 days of receipt of their invoice.Monthly sales hold steady at 100 units at 5 CU each.The cost of the merchandise is 3 CU per unit.The firm has been in existence for 100 years.By how much will the amount of cash received from customers in January X1 differ from the amount of sales revenue recognized in that month? The retailer closes it books on 30 June each year.

A) 500 CU
B) 300 CU
C) 200 CU
D) No difference