During the year, X Company sold merchandise on account to customers for $420,000. The company collected $386,000 in cash from customers during the year. Which of these amounts appears on the Income Statement and which appears on the Statement of Cash Flows?

$386,000 appears on the Income Statement and $420,000 appears on the Statement of Cash Flows $420,000 appears on both statements $34,000 appears on both statements $386,000 appears on both statements $34,000 appears on the Income Statement and $386,000 appears on the Statement of Cash Flows $420,000 appears on the Income Statement and $386,000 appears on the Statement of Cash Flows