Answer:
The multiple choices are:
a.300,000
b.$400,000
c.$800,000
d.$1,300,000
The correct option is C,$800,000
Explanation:
Opening accounts receivable=closing receivables+cash received-credit sales
closing receivables is $500,000
cash received during the month was $1,800,000
credit sales during the month was $1,500,000
Opening accounts receivable =$500,000+$1,800,000-$1,500,000
opening accounts receivable balance =$800,000
This is more like working backwards,as closing closing receivables formula is ;
closing receivables=opening receivable+credit sales-cash received
simply change the subject to opening receivables
opening receivables=cash received+closing receivables-credit sales
