Cosmos Computer Consulting (CCC) is preparing its year-end financial statements.They completed two projects in the last month: one worth $12,000 that has been invoiced to the customer but has not yet been paid, and one worth $18,000 that has not yet been invoiced to the customer.In the case of the second contract CCC received a $3,000 deposit at the beginning of the contract.With respect to these two contracts what amount would be recorded as accounts receivable for Cosmos at year-end?
A)$12,000
B)$18,000
C)$27,000
D)$30,000

Question

Quizplus · Accepted Answer

At year-end, CCC would record the full amount of the invoiced but unpaid contract as accounts receivable, which is $12,000. In addition, they would also record the remaining amount of the second contract as accounts receivable, which is $18,000 - $3,000 = $15,000. Therefore, the total accounts receivable for CCC at year-end would be $12,000 + $15,000 = $27,000.

Cosmos Computer Consulting (CCC) Is Preparing Its Year-End Financial Statements