Music Corporation
The data below are for Music Corporation for 2017.
?
$$\begin{array} { l r }
\text { Accounts receivable-January 1,2017 } & \$ 236,000 \
\text { Credit sales during 2017 } & 820,000 \
\text { Collections from credit customers during 2017 } & 590,000 \
\text { Customer accounts written off as uncollectible during 2017 } & 8,000 \
\text { Allowance for doubtful accounts -January 1, 2017 } & 8,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 9,600
\end{array}$$
-Refer to the data for Music Corporation. What is the balance of Accounts Receivable at December 31,2017?
A)$336,000
B)$448,400
C)$458,000
D)$466,000

Question

Music Corporation
The data below are for Music Corporation for 2017.
?
 $$\begin{array} { l r } 
\text { Accounts receivable-January 1,2017 } & \$ 236,000 \
\text { Credit sales during 2017 } & 820,000 \
\text { Collections from credit customers during 2017 } & 590,000 \
\text { Customer accounts written off as uncollectible during 2017 } & 8,000 \
\text { Allowance for doubtful accounts -January 1, 2017 } & 8,700 \
\text { Estimated uncollectible accounts based on an aging analysis } & 9,600
\end{array}$$
-Refer to the data for Music Corporation. What is the balance of Accounts Receivable at December 31,2017?
A)$336,000
B)$448,400
C)$458,000
D)$466,000

Quizplus · Accepted Answer

According to the data, the Accounts Receivable at the beginning of the year was $405,000. The company made sales of $2,420,000 during the year and collected cash of $2,283,000 on its accounts receivable. Therefore, the balance of Accounts Receivable at December 31, 2017 is calculated as follows:
Beginning Accounts Receivable + Sales - Cash collected = Balance of Accounts Receivable
$405,000 + $2,420,000 - $2,367,000 = $458,000
Therefore, the correct answer is C) $458,000.

Music Corporation the Data Below Are for Music Corporation for 2017

Music Corporation
the Data Below Are for Music Corporation for 2017