Question

On January 1, 2015, the Accounts Receivable of Linda, Inc. had a debit balance of $150,000. During January, the company provided services for $600,000 on account. The company collected $250.000 from customers on account in January What was the ending balance in the Accounts Receivable account at the end of January?A. $600,000B. $350,000C. $500,000D. $750,000

Answer 1

The ending balance in the Accounts Receivable account at the end of January was C. $500,000

Step-by-step explanation:

The ending balance in the Accounts Receivable account = The beginning balance in the Accounts Receivable account + Amount of provided services on account - Amount of collected from customers on account

On January 1, 2015, the Accounts Receivable of Linda, Inc. had a debit balance of $150,000. The beginning balance in the Accounts Receivable account was $150,000.

During January, the company provided services for $600,000 on account and collected $250,000 from customers on account

The ending balance in the Accounts Receivable account = $150,000 + $600,000 - $250,000 = $500,000