Question

On July 1, 2016, the Olympic Company had an accounts receivable balance of $40,000. During the month, the company made additional sales of $30,000 on account and collected $48,000. On July 31, the accounts receivable balance is:

Answer 1

$22,000

Step-by-step explanation:

Calculation for the accounts receivable balance

Using this formula

July 31 Accounts receivable balance=Opening Balance of Account Receivables + Credit Sales made – Cash Collection

Let plug in the formula

July 31 Accounts receivable balance=$40,000+$30,000-$48,000

July 31 Accounts receivable balance=$22,000

Therefore July 31 Accounts receivable balance is $22,000