Question

On January 1, the accounts receivable of Martha, Inc. had a debit balance of ________. During January, the company provided services for ________. The company collected ________ from its customers on account in January. What was the ending balance in the accounts receivable account at the end of January.

Answer 1

The ending balance in the accounts receivable account for Martha, Inc. at the end of January is calculated by adding the services provided during the month to the opening balance and subtracting the collections received on account. Without specific figures provided, an exact calculation cannot be made.

Step-by-step explanation:

To determine the ending balance in the accounts receivable account of Martha, Inc. at the end of January, we need to consider the opening balance, the value of services provided during the month, and the amount collected from customers on account. The opening balance is the debit balance on January 1st. The value of services provided during January will be added to this opening balance because when a company provides services on account, its accounts receivable increases. Lastly, the amount collected from customers will decrease the accounts receivable, since it represents cash payments received from customers on their outstanding receivables.

The ending balance in the accounts receivable account can be calculated with the following formula:

Ending Accounts Receivable = Opening Balance + Services Provided on Account - Collections on Account

If the provided information includes specific dollar amounts for the opening balance, services provided, and collections, these would be plugged into the formula to find the ending balance of accounts receivable for the month of January. Without the specific figures, we cannot calculate the exact ending balance.