On January 1 2017 the Accounts Receivable of Martha Inc had

On January 1, 2017, the Accounts Receivable of Martha, Inc had a debt balance of $170,000 During January, the company provided services for $700,000 on account The company collected $200,000 from its customers on account in January What was the ending balance in the Accounts Recevable account at the end of January? OA. $500,000 OB. $670,000 O C. $870,000 ? D. $700 000

Solution

Calculation of Ending Balance in the Accounts Receivable account at the end of January

Therefore the correct option is B) $670,000.

Beginning Balance as on January 1, 2017	$170,000
Add: Service Provided on Account	$700,000
Less: Cash Collected from customers on account	($200,000)
Ending Balance as on January 31, 2017	$670,000