Crabtree Company's tabular analysis at the beginning of August included the following balances: Use the tabular analysis to determine the balance in Cash if Crabtree collects its receivables and pays its accounts in full on August 1.

Question

Crabtree Company's tabular analysis at the beginning of August included the following balances:  Use the tabular analysis to determine the balance in Cash if Crabtree collects its receivables and pays its accounts in full on August 1.

Quizplus · Accepted Answer

To find the balance in cash if Crabtree collects its receivables and pays its accounts in full on August 1, we need to add the Accounts Receivable balance of $5000 and the Supplies balance of $1000 to the Cash balance of $4500, and then deduct the Accounts Payable balance of $1000 and the Salaries Payable balance of $1000. This gives us a balance of $10500 in Cash. Therefore, the correct answer is C.

Crabtree Company's Tabular Analysis at the Beginning of August Included