Clean Dirt,Inc.had $10,000 of accounts receivable at December 31,2010.During 2011,Clean Dirt's sales were $100,000.At December 31,2011,Clean Dirt's statement of cash flows showed cash collected from customers of $102,000.How much was Clean Dirt's accounts receivable balance on its December 31,2011 balance sheet?
A)$12,000
B)$10,000
C)$8,000
D)$2,000

Question

Quizplus · Accepted Answer

Clean Dirt, Inc. started with accounts receivable of $10,000 in 2010. In 2011, they had sales of $100,000, which means they had a total of $110,000 in accounts receivable for 2011. They collected $102,000 during the year, so the remaining accounts receivable balance at the end of 2011 would be $8,000. Therefore, the correct answer is C.