Hesson Properties, Inc.The following transactions occurred during June:
-Refer to Hesson Properties. How much is still owed to the company by its customers at the end of the month?
A)$0
B)$500
C)$1,000
D)$1,500

Question

Hesson Properties, Inc.The following transactions occurred during June: 
-Refer to Hesson Properties. How much is still owed to the company by its customers at the end of the month?
A)$0 
B)$500 
C)$1,000 
D)$1,500

Quizplus · Accepted Answer

The accounts receivable balance at the beginning of the month was $2,000. Sales on account during the month were $4,000. Therefore, the total amount owed by customers is $6,000. Cash collections on account during the month were $5,000. Therefore, the ending accounts receivable balance would be $1,000 ($6,000 - $5,000).