Question

On October 1, the accounts receivable account balance was $115,020. During October, $449,350 was collected from customers on account. Assuming the October 31 balance was $130,050 determine the fees billed to customers on account during October.

Answer 1

$464,380

Step-by-step explanation:

The fees billed to customer during the month of the October can be determined using the following formula:

Fees billed to customer=Closing balance of accounts receivables+amount collected from customers-opening balance of accounts receivables

In this question:

closing balance of accounts receivables=$130,050

amount collected from customers=$449,350

opening balance of accounts receivables= $115,020

Fees billed to customers=$130,050+$449,350-$115,020=$464,380