At the beginning of January of the current year, Little Mikey's Catering ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Mikey $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:
A) $2,300.
B) $49,300.
C) $54,300.
D) $49,700.
E) $54,700.

Question

Quizplus · Accepted Answer

The balance in the accounts receivable account at the end of January can be calculated by adding the amount of collections and services provided on account to the beginning balance, and subtracting the amount received for future services. 
Beginning balance: $52,000
Collections: +$14,800
Services provided: +$12,500
Less amount received for future services: -$5,000
End balance: $49,300 (Option B)

At the Beginning of January of the Current Year, Little