Question

dr. Cash 600 cr. Common Stock 600 dr. Equipment 600 cr. Cash 200 cr. Loans Payable 400 dr. Supplies 50 cr. Accounts Payable 50 dr. Salary Expense 75 cr. Salary Payable 75 dr. Utilities Expense 15 cr. Cash 15 dr. Cash 350 dr. Accounts Receivable 450 cr. Service Revenue 800 dr. Accounts Payable 30 cr. Cash 30 dr. Cash 250 cr. Accounts Receivable 250 dr. Dividends 10 cr. Cash 10 If Grant started the month with $80 of accounts receivable, what is the company's amount of accounts receivable at the end of the month?

If Grant started the month with $80 of accounts receivable, what is the company's amount of accounts receivable at the end of the month?

Answer 1

Ans:  the company's amount of accounts receivable at the end of the month is $280.

Working:

Accounts Receivable

	Amount		Amount
Opening Balance	$80	Cash	$250
Service Revenue	$450
Balance	$280

The balnace of Account Receivable was $80 in thr beginning of the month. Then in 6th Journal entry, a debit has been made to Account receivable as some service has been provided on account. And then in 8Th Journal entry, a credit has been made to Account Receivable as cash has been received from the customer reducing the balance of Account Receivable ledger.

Therefore, by posting those entries in Account Receivable ledger, we will get the closing balance of the Account Receivable ledger.

Closing balance is arrived by adding all debit amounts and deducting credit amounts from the debit total.