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13 November, 06:47

At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $70,000 for accounts receivable. During January, the company collected $18,400 from customers on account and provided additional services to customers on account totaling $14,300. Additionally, during January one customer paid Mikey $6,800 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

a. $72,700.

b. $65,900.

c. $4,100.

d. $74,100.

e. $67,300.

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  1. 13 November, 09:46
    0
    end of January balance in the accounts receivable account should be $65900

    Explanation:

    given data

    accounts receivable = $70,000

    customers on account = $18,400

    account totaling = $14,300

    services to be provided = $6,800

    to find out

    balance in the accounts receivable account

    solution

    balance in the accounts receivable account will be find as

    Balance of Accounts Receivable = Beginning balance + Revenue from earned services - Collections during the period ... 1

    put here value

    Balance of Accounts Receivable = 70000 + 14300 - 18400

    Balance of Accounts Receivable = $65900

    so

    end of January balance in the accounts receivable account should be $65900
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