The data below is for Music Corporation for 2016. $$\begin{array} { l r }
\text { Accounts receivable-January 1, 2016 } & \$ 236,000 \
\text { Credit sales during 2016 } & 820,000 \
\text { Collections from credit customers during 2016 } & 590,000 \
\text { Customer accounts written off as uncoll ectible during 2016 } & 8,000 \
\text { All owance for doubtful accounts-January 1, 2016 } & 8,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 9,600
\end{array}$$
-Refer to the data for Music Corporation. What is the balance of Accounts Receivable at December 31, 2016?
A) $336,000
B) $448,400
C) $458,000
D) $466,000

Question

The data below is for Music Corporation for 2016. $$\begin{array} { l r } 
\text { Accounts receivable-January 1, 2016 } & \$ 236,000 \
\text { Credit sales during 2016 } & 820,000 \
\text { Collections from credit customers during 2016 } & 590,000 \
\text { Customer accounts written off as uncoll ectible during 2016 } & 8,000 \
\text { All owance for doubtful accounts-January 1, 2016 } & 8,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 9,600
\end{array}$$
-Refer to the data for Music Corporation. What is the balance of Accounts Receivable at December 31, 2016?
A) $336,000
B) $448,400
C) $458,000
D) $466,000

Quizplus · Accepted Answer

The balance of Accounts Receivable at December 31, 2016, is calculated as follows: Beginning Accounts Receivable + Credit Sales - Collections - Write-offs = Ending Accounts Receivable. Therefore, $236,000 + $820,000 - $590,000 - $8,000 = $458,000.

The Data Below Is for Music Corporation for 2016 -Refer to the Data for Music Corporation