At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

A) $100 debit.
B) $2700 debit.
C) $100 credit.
D) $2700 credit.

Question

Renee Yerion · Accepted Answer

Final Answer : B, Explanation :  To find the accounts receivable balance at December 31, we need to calculate the net change in accounts receivable during December.Beginning balance (December 1): $1300Credit sales during December: $7400Collections during December: -$6000To calculate the net change, we need to add the credit sales and subtract the collections:$1300 + $7400 - $6000 = $2700Since the collections were less than the credit sales, the accounts receivable balance increased by $2700 during December. And since the balance is a debit balance (representing money owed to the company), the answer is B) $2700 debit.

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

A) $100 debit.
B) $2700 debit.
C) $100 credit.
D) $2700 credit.

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Learning Objectives

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At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance isA) $100 debit.B) $2700 debit.C) $100 credit.D) $2700 credit.

Definitions

Learning Objectives

Learning Objectives

Related questions

At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

A) $100 debit.
B) $2700 debit.
C) $100 credit.
D) $2700 credit.