At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:
A) $54,700.
B) $49,700.
C) $2,300.
D) $54,300.
E) $49,300.

Question

Quizplus · Accepted Answer

The beginning balance of accounts receivable is $52,000. During January, $14,800 was collected, reducing the balance, and $12,500 was added for new services provided on account. The $5,000 payment for future services does not affect accounts receivable. Therefore, the ending balance is $52,000 - $14,800 + $12,500 = $49,700.

At the Beginning of January of the Current Year, Thomas