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The ending balance of accounts receivable was $84,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $369,000. Sales reported on the income statement were
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31 votes
The ending balance of accounts receivable was $84,000. Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $369,000. Sales reported on the income statement were $400,500. Based on this information, the beginning balance in accounts receivable was:

User Adrianne
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26 votes
26 votes

Answer: $52500

Step-by-step explanation:

Based on the information given in the question, the beginning balance in accounts receivable will be calculated thus:

= Ending balance of account receivable + Sales adjusted to cahs basis - Sales reported on income statement

= $84000 + $369000 - $400500

= $52500

Therefore, the beginning balance in account receivable is $52500.

User Nitzien
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