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Indirect Oil Co.reports these account balances at December 31,2017
On January 2,2018,Indirect Oil collected $25,000 of its accounts receivable and paid $20,000 of its accounts payable.
-In a trial balance prepared at December 31,2017 the total of the debit column is:
A)$805,000.
B)$780,000.
C)$415,000.
D)$390,000.

Question

[The following information applies to the questions displayed below.]
Indirect Oil Co.reports these account balances at December 31,2017
  On January 2,2018,Indirect Oil collected $25,000 of its accounts receivable and paid $20,000 of its accounts payable.
-In a trial balance prepared at December 31,2017 the total of the debit column is:
A)$805,000. 
B)$780,000. 
C)$415,000. 
D)$390,000.

Quizplus · Accepted Answer

To find the total of the debit column, we need to add up all of the debit balances in the accounts listed. From the account balances provided, we can see that there are only three accounts with debit balances: Cash ($40,000), Accounts Receivable ($150,000), and Supplies ($200,000). Adding these up, we get a total of $390,000. Since the question asks for the total of the debit column in the trial balance, we don't need to consider any accounts that have a credit balance. Therefore, the correct answer is (D) $390,000.

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