At December 1 2016 Dubois Company's accounts receivable balance was $1300. During December Dubois had credit sales of $7400 and collected accounts receivable of $6000. At December 31 2016 the accounts receivable balance is

Question

Quizplus · Accepted Answer

To find the accounts receivable balance at December 31, we need to calculate the net change in accounts receivable during December.

Beginning balance (December 1): $1300 
Credit sales during December: $7400 
Collections during December: -$6000

To calculate the net change, we need to add the credit sales and subtract the collections:

$1300 + $7400 - $6000 = $2700

Since the collections were less than the credit sales, the accounts receivable balance increased by $2700 during December. And since the balance is a debit balance (representing money owed to the company), the answer is B) $2700 debit.

At December 1 2016 Dubois Company's Accounts Receivable Balance Was