Question

At December 1, 2022, Splish Brothers Inc. Accounts Receivable balance was $20160. During December, Splish had credit sales of $54000 and collected accounts receivable of $43200. At December 31, 2022, the Accounts Receivable balance is

O $20160 debit
O $30960 credit
O $30960 debit
O $74160 debit

Answer 1

The ending balance for Splish Brothers Inc.'s Accounts Receivable on December 31, 2022, is calculated by adding credit sales to the beginning balance and subtracting collections, resulting in a balance of $30,960 debit.

Step-by-step explanation:

The question involves calculating the ending Accounts Receivable balance for Splish Brothers Inc. as of December 31, 2022.

The company started with an Accounts Receivable balance of $20,160. During December, Splish had credit sales of $54,000 and collected receivables amounting to $43,200. To find the ending balance, we add credit sales to the beginning balance and subtract the collections.

1. Beginning Accounts Receivable: $20,160
2. Add: Credit Sales: +$54,000
3. Less: Collections: -$43,200
4. Ending Accounts Receivable: $20,160 + $54,000 - $43,200 = $30,960 debit

Therefore, the correct answer is $30,960 debit.