Question

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
Cash Accounts Payable
Accounts Receivable Shawn Dahl, Capital
Office Equipment Revenue
Canoe and Kayak Equipment Expenses
Following are the transactions:
1. Shawn Dahl invested $44,400 in cash to open the business
2. Paid $12,100 in cash for the purchase of kayak and canoe equipment
3. Paid $1,850 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $4,600 on credit
5. Received $4,700 in cash for kayak rentals
6. Rented canoes and kayaks for $2,000 on account
7. Purchased office equipment for $205 in cash
8. Received $1,200 in cash from credit clients
9. Shawn Dahl withdrew $2,300 in cash for personal expenses
Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

Answer 1

Answer:

what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

$800

Explanation:

We can seen in the transactions in the question that Whitewater Rentals first obtained $2,000 from rented canoes on account. These $2,000 represent the initial balance of accounts receivable.

Later, credit clients paid $1,200 cash. This reduced accounts receivable by the same amount.

Therefore, the balance of Accounts Receivable for Whitewater Rentals at the end of September is = $2,000 - $1,200 = 800