On December 31, 2019, Munchkin Company had a $367,650 balance in Accounts Receivable. During the year 2020, the company collected $600,000 from its credit customers. The December 31, 2020 balance of the Accounts Receivable was $511,950.
Determine the amount of sales on accounts for 2020.
A) $468,000
B) $744,300
C) $470,700
D) $759,300

Question

Quizplus · Accepted Answer

Beginning A/R balance + Sales on account - Cash receipts = Ending A/R balance
$367,650 + X - $600,000 = $511,950
X = $511,950 - $367,650 + $600,000
X = $744,300

On December 31, 2019, Munchkin Company Had a $367,650 Balance