The account "Accounts Receivable" began with a zero balance and then had the following changes: increase of $625,decrease of $175,increase of $250 and increase of $125.The final balance is a:
A)credit balance of $825.
B)debit balance of $825.
C)credit balance of $1,175.
D)debit balance of $1,175.

Question

Quizplus · Accepted Answer

The final balance is calculated by adding the increases and subtracting the decrease: $625 - $175 + $250 + $125 = $825. Since Accounts Receivable is an asset account, it normally has a debit balance. Therefore, the final balance is a debit balance of $825.

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