On December 1, the Accounts Receivable account had a $5,000 balance. The business received
$400 during the month from its charge-account customer. After posting this transaction, the new balance in the Accounts Receivable account is:
A)a $4,600 credit balance.
B)a $4,600 debit balance
C)a $5,400 debit balance.
D)a $5,400 credit balance

Question

Quizplus · Accepted Answer

The initial balance of $5,000 in Accounts Receivable is a debit balance. Receiving $400 from a customer reduces the Accounts Receivable by $400, resulting in a new debit balance of $4,600.

On December 1, the Accounts Receivable Account Had a $5,000