What accounts receivable balance would Dinty report in its first year-end balance sheet?

Question

Quizplus · Accepted Answer

The correct answer can be found by using the formula: Credit sales - Cash collections - Write-offs = Change in Accounts receivable. Based on the information provided ($2,200,000 in credit sales, $1,950,000 in cash collections, and $32,000 in write-offs), the change in accounts receivable would be $218,000. Therefore, the accounts receivable balance reported on the year-end balance sheet would be $218,000. Therefore, the correct choice is B.

What Accounts Receivable Balance Would Dinty Report in Its First