In this period,a company recorded Sales Revenue of $50,000 from sales of goods to customers who agreed to pay later.In the next period,the company received payment from customers of $45,000.Which of the following statements is correct?.

Question

Quizplus · Accepted Answer

Accounts Receivable at the end of this period is $50,000 because the company recorded $50,000 as Sales Revenue in the first period and received only $45,000 in the next period. The remaining $5,000 is still owed by the customers, and therefore, is represented as Accounts Receivable on the balance sheet. The other options are incorrect because Revenue for this period is $0 (since no sales were made in the current period), Accounts Payable is not relevant to this scenario, and Expenses for the next period will not be affected by the payment received in the current period.

In This Period,a Company Recorded Sales Revenue of $50,000 from Sales