The account "Accounts Receivable" began with a zero balance and then had the following changes: increase of $625, decrease of $275, increase of $350 and increase of $200. The final balance is a:
A)credit balance of $900.
B)debit balance of $900.
C)credit balance of $1,450.
D)debit balance of $1,450.

Question

Quizplus · Accepted Answer

The account "Accounts Receivable" is an asset account, and increases in asset accounts are recorded as debits. The final balance is calculated as follows: $0 + $625 - $275 + $350 + $200 = $900. Therefore, it is a debit balance of $900.

The Account "Accounts Receivable" Began with a Zero Balance and Then