At the beginning of January of the current year,Little Mikey's Catering ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Mikey $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:
A)$54,700.
B)$49,700.
C)$2,300.
D)$54,300.
E)$49,300.

Question

Quizplus · Accepted Answer

The beginning balance of accounts receivable is $52,000. During January, $14,800 was collected, reducing the balance, and $12,500 was added for new services provided. The $5,000 payment for future services is not included in accounts receivable. Thus, the ending balance is $52,000 - $14,800 + $12,500 = $49,700.

At the Beginning of January of the Current Year,Little Mikey's