At December 1, 2015, Cursive Company's accounts receivable balance was $1,800. During December, Cursive had credit revenues of $7,200 and collected accounts receivable of $6,000. At December 31, 2015, the accounts receivable balance is
A)$600 debit.
B)$3,000 debit.
C)$600 credit.
D)$3,000 credit.

Question

Quizplus · Accepted Answer

Starting AR balance = $1,800 
Credit revenues = $7,200 
Total AR = AR balance + credit revenues = $1,800 + $7,200 = $9,000 
Collected AR = $6,000 
Ending AR balance = Total AR - Collected AR = $9,000 - $6,000 = $3,000 debit.

At December 1, 2015, Cursive Company's Accounts Receivable Balance Was