A business has the following transactions: the business is started by receiving $20,000 from the owner.The business purchases $500 of supplies on account.The business purchases $2,000 of furniture on account.The business renders services to various clients totaling $9,000 on account.The business pays out $2,000 for Salary expense and $3,000 for Rent expense.Business pays $500 to supplier for the supplies purchased earlier.The business collects $1,500 from one of its clients for services rendered earlier in the month.At the end of the month,all journal entries are posted to the ledger.The Accounts receivable account will appear as follows:

Question

Quizplus · Accepted Answer

The correct answer is D because the business initially records $9,000 in accounts receivable for services rendered on account. Then, when the business collects $1,500 from its clients, this amount is subtracted from the accounts receivable, leaving a balance of $7,500. The presentation in D correctly shows the initial amount, the deduction, and the final balance in the accounts receivable ledger.

A Business Has the Following Transactions: the Business Is Started Accounts receivable 9,0001,5007,500\begin{array}{l}\text { Accounts receivable }\\\begin{array} { l | l } \hline 9,000 & \\& 1,500 \\\hline & 7,500\end{array}\end{array} Accounts receivable 9,000​1,5007,500​​​

A Business Has the Following Transactions: the Business Is Started $\begin{array}{l}\text { Accounts receivable }\\\begin{array} { l | l } \hline 9,000 & \\& 1,500 \\\hline & 7,500\end{array}\end{array}$