Question

Carmichael Inc. has a beginning balance in Accounts Receivable of $100,000 at June 1. On June 24, Carmichael sells $20,000 of merchandise to K. Low, terms 2/10, n/30. Assuming just this one transaction occurred, what is the ending balance in Accounts Receivable at June 30 under the gross method

Answer 1

Answer:

$120,000

Explanation:

Particulars                                                                   Amount

Beginning balance in accounts receivables A/C    $100,000

Add: Credit sales                                                       $20,000

Ending balance in accounts receivables A/C        $120,000