Crossland Corporation reported sales on its income statement of $435,000.On the statement of cash flows,which used the direct method,sales adjusted to a cash basis were $455,000.Crossland Corporation reported the following account balances on its balance sheet for the year:
Based on this information,the beginning balance in accounts receivable was:
A) $50,000
B) $40,000
C) $30,000
D) $20,000

Question

Crossland Corporation reported sales on its income statement of $435,000.On the statement of cash flows,which used the direct method,sales adjusted to a cash basis were $455,000.Crossland Corporation reported the following account balances on its balance sheet for the year:
 Based on this information,the beginning balance in accounts receivable was:
A) $50,000 
B) $40,000 
C) $30,000 
D) $20,000

Quizplus · Accepted Answer

11ea7761_15a8_5e64_81a5_5d8f5fe15a3f_TB2580_00 $435,000 + X = $455,000
X = $455,000 - $435,000 = $20,000
Decrease in accounts receivable = Beginning balance accounts receivable - Ending balance accounts receivable
$20,000 = Beginning balance accounts receivable - $30,000
Beginning balance accounts receivable = $20,000 + $30,000 = $50,000

Crossland Corporation Reported Sales on Its Income Statement of $435,000