Question

At December 1, 2017, Swifty Corporation Accounts Receivable balance was $12770. During December, Swifty had credit sales of $34200 and collected accounts receivable of $27360. At December 31, 2017, the Accounts Receivable balance is _____________.
a) $19610 credit
b) $1 debit
c) $46970 debit
d) $19610 debit

Answer 1

Answer:

a) $19610 credit

Explanation:

Given: Accounts receivables as on Dec 1, 2017 = $12770

           Credit sale during the month = $34200

           Collections during the month = $27360

Accounts Receivable balance at the end of the month = Opening Accounts Receivable balance + credit sales during the month - cash collected during the month

= $12770 + $34200 - $27360

Accounts Receivable balance as on Dec 31, 2017 =  $19610 credit