On January 1, 2017, the Accounts Receivable of Martha, Inc. had a debit balance of $150,000. During January, the company provided services for $400,000 on account. The company collected $240,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
A) $160,000
B) $550,000
C) $310,000
D) $400,000

Question

Quizplus · Accepted Answer

Beginning balance in Accounts Receivable = $150,000
Services provided on account = $400,000
Total accounts receivable = $550,000
Collections from customers = $240,000
Ending balance in Accounts Receivable = Total accounts receivable - Collections from customers = $550,000 - $240,000 = $310,000. Therefore, the correct answer is Option C.