Assuming the accounts receivable balance at the end of 2017 is $50,000,and it has increased by 10% per year since the end of 2016,the balance at the end of 2016 (rounded to the nearest whole dollar_was:
A) $45,455
B) $37,566
C) $41,322
D) $55,000

Question

Quizplus · Accepted Answer

The balance at the end of 2017 is $50,000, which represents a 10% increase from the end of 2016. To find the original amount before the increase, divide by 1.10 (100% + 10% = 110% = 1.10). So, $50,000 / 1.10 = $45,454.55, which rounds to $45,455.

Assuming the Accounts Receivable Balance at the End of 2017