The Accounts Receivable account for Rusty's Mechanic Shop had a beginning balance of $12,000. During the month, Rusty received payments of $7,000 on account and made sales on account of $16,000. The ending balance in the Accounts Receivable account is:
A) $3,000.
B) $9,000.
C) $21,000.
D) $35,000.

Question

Quizplus · Accepted Answer

The ending balance is calculated as: Beginning balance ($12,000) + Sales on account ($16,000) - Payments received ($7,000) = $21,000.

The Accounts Receivable Account for Rusty's Mechanic Shop Had a Beginning