The following information is for the month of January. $$\begin{array} { | l | l | c | }
\hline \text { (I.) } & \text { Beginning accounts receivable } & = \$ 40 \text { million } \
\hline \text { (II) } & \text { Sales for January } & = \$ 160 \text { million } \
\hline \text { (III) } & \text { Collection for January } & = \$ 145 \text { million } \
\hline
\end{array}$$ Find the ending accounts receivable for January.

Question

The following information is for the month of January. $$\begin{array} { | l | l | c | } 
\hline \text { (I.) } & \text { Beginning accounts receivable } & = \$ 40 \text { million } \
\hline \text { (II) } & \text { Sales for January } & = \$ 160 \text { million } \
\hline \text { (III) } & \text { Collection for January } & = \$ 145 \text { million } \
\hline
\end{array}$$ Find the ending accounts receivable for January.

Quizplus · Accepted Answer

Ending accounts receivable is calculated by adding the beginning accounts receivable to the sales for the month and then subtracting the collections for the month. Therefore, ending accounts receivable = $40 million + $160 million - $145 million = $55 million.

The Following Information Is for the Month of January Find the Ending Accounts Receivable for January