A company had beginning accounts receivable of $175,000. All sales were on account and totaled $550,000. Cash collected from customers totaled $650,000. Calculate the ending accounts receivable balance.

Question

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The ending accounts receivable balance is calculated as follows: Beginning accounts receivable ($175,000) + Sales on account ($550,000) - Cash collected ($650,000) = Ending accounts receivable ($75,000).

A Company Had Beginning Accounts Receivable of $175,000