On January 1, 2015, the Accounts Receivable of Linda Company had a debit balance of $20,000. During January, the company provided services for $600,000 on account. The company collected $250,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
A)$350,000
B)$620,000
C)$370,000
D)$600,000

Question

Quizplus · Accepted Answer

The ending balance in the Accounts Receivable account can be calculated as follows:

Beginning balance: $20,000
Services provided on account: $600,000
Total accounts receivable: $620,000
Collections from customers: $250,000
Ending balance: $620,000 - $250,000 = $370,000

Therefore, the correct answer is C) $370,000.