At December 1, 2010, Gibson Company's accounts receivable balance was $1,200. During December, Gibson had credit revenues of $5,000 and collected accounts receivable of $4,000. At December 31, 2010, the accounts receivable balance is
A) $1,200 debit.
B) $2,200 debit.
C) $6,200 debit.
D) $2,200 credit.

Question

Quizplus · Accepted Answer

Starting accounts receivable balance: $1,200
Credit revenues during December: $5,000
Total accounts receivable during December: $6,200
Total collections during December: $4,000

Ending accounts receivable balance: $6,200 - $4,000 = $2,200 debit.

At December 1, 2010, Gibson Company's Accounts Receivable Balance Was