The following information is available for Farr Company relative to 2011 operations:

What is Farr Company's accounts receivable balance at December 31, 2011?

Question

The following information is available for Farr Company relative to 2011 operations:

What is Farr Company's accounts receivable balance at December 31, 2011?

Quizplus · Accepted Answer

Farr Company's accounts receivable balance at December 31, 2011 can be calculated as follows:
Beginning accounts receivable balance = $70,000
Credit sales = $890,000
Collections = $898,000
Ending accounts receivable balance = Beginning accounts receivable balance + Credit sales - Collections
Ending accounts receivable balance = $70,000 + $890,000 - $898,000
Ending accounts receivable balance = $62,000

The Following Information Is Available for Farr Company Relative to 2011