The following is the general formula for calculating the "Ending accounts receivable
(AR):"

Question

Quizplus · Accepted Answer

The formula for calculating the ending accounts receivable is beginning AR plus sales minus collections. This is because beginning AR is the amount of money owed to the company at the start of the accounting period. During the period, the company makes sales, which increases the amount owed, and receives payments or collections, which reduces the amount owed. Therefore, at the end of the period, the ending AR is equal to the beginning AR plus sales minus collections.

The Following Is the General Formula for Calculating the "Ending