Bagley AC Repair Company began August with Accounts Receivable totaling $3200.During August the company performed repair services and billed its customers a total of $11500 and collected amounts due totaling $10200.Use the following tabular analysis to determine the net effect of these transactions.

Question

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The company began with $3200 in Accounts Receivable and performed repair services and billed customers $11500, resulting in a total of $14700 owed by customers. However, the company only collected $10200, leaving $4500 still owed by customers. Therefore, Accounts Receivable would increase by $4500 ($3200 + $1300) and Cash would increase by $10200. Revenue would also increase by $11500.

Bagley AC Repair Company Began August with Accounts Receivable Totaling