During the month of November, Duffee Company had cash receipts of $3,500 and paid out $1,000 for expenses. The November 30^th cash balance was $5,300. What was the cash balance on November 1? A) $1,800 B) $2,800 C) $4,300 D) $5,800 E) $7,300

Question

Quizplus · Accepted Answer

The cash balance on November 1 can be found by using the formula:
Beginning balance + Cash receipts - Cash payments = Ending balance
We know that:

Cash receipts in November = $3,500
Cash payments in November = $1,000
Ending balance on November 30 = $5,300

So, plugging these values into the formula, we get:

Beginning balance + $3,500 - $1,000 = $5,300

Simplifying:

Beginning balance = $5,300 - $3,500 + $1,000 = $2,800

Therefore, the cash balance on November 1 was $2,800. The answer is B.

During the Month of November, Duffee Company Had Cash Receipts