On January 1,2015,the Accounts Receivable of Linda Inc.had a debit balance of $20,000.During January,the company provided services for $600,000 on account.The company collected $250,000 from its customers on account in January.What was the ending balance in the Accounts Receivable account at the end of January?

Question

Quizplus · Accepted Answer

To find the ending balance in the Accounts Receivable account, we need to add the amount of services provided on account to the beginning balance and then subtract the amount collected from customers on account.

Beginning balance = $20,000 
Services provided on account = $600,000 
Amount collected from customers on account = $250,000

Ending balance = Beginning balance + Services provided on account - Amount collected from customers on account 
Ending balance = $20,000 + $600,000 - $250,000 
Ending balance = $370,000

Therefore, the correct choice is (C) $370,000.