The following account balances are taken from the December 31, 2015, financial statements of ABZ Advertising Company.The company uses accrual basis accounting.

The following activities occurred in 2016:
1.Performed advertising services on account, $55,000.
2.Received cash payments on account, $10,400.
3.Received deposits from customers for advertising services to be performed in 2017, $2,500.
4.Made payments to suppliers on account, $5,000.
5.Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the year.
-Use the information above to answer the following question.What is the balance of Accounts Receivable at December 31,2016?
A) $51,896.
B) $55,000.
C) $44,600.
D) $54,396.

Question

The following account balances are taken from the December 31, 2015, financial statements of ABZ Advertising Company.The company uses accrual basis accounting.
  
The following activities occurred in 2016:
1.Performed advertising services on account, $55,000.
2.Received cash payments on account, $10,400.
3.Received deposits from customers for advertising services to be performed in 2017, $2,500.
4.Made payments to suppliers on account, $5,000.
5.Incurred $45,000 of operating expenses; $39,000 was paid in cash and $6,000 was on account and unpaid as of the end of the year.
-Use the information above to answer the following question.What is the balance of Accounts Receivable at December 31,2016?
A) $51,896. 
B) $55,000. 
C) $44,600. 
D) $54,396.

Quizplus · Accepted Answer

The balance of Accounts Receivable at December 31, 2016, is $51,896, as this is the correct amount provided in the options.

The Following Account Balances Are Taken from the December 31