A business has the following transactions The business receives $22,000 cash and

Question

A business has the following transactions The business receives $22,000 cash and issues common stock to stockholders The business purchases $800 of office supplies on account. The business purchases $3,000 of furniture on account. The business performs services for various dlients totaling $11,000 on account The business pays $3,000 for salaries expense and $3,500 for rent expense. The business pays $800 to a supplier for the office supplies purchased earlier The business collects $4,000 from one of its clients for services rendered earlier in the month. At the end of the month, all journal entries are posted to the ledger. Accounts Receivable will appear as which of the following? O A. Accounts Receivable 11,000 4,000 7,000Bal OB. Accounts Receivable 4,000 11,000 Bal. O C. Accounts Receivable 11.000 Bal. O D.Accounts Receivable 11,000 4,000 Bal. Click to select your answer

Explanation / Answer

Correct answer is A Accounts receivables Particulars Debit Particulars Credit Opening balance $          -   Collections $   4,000 Services provided $ 11,000 Closing balance $   7,000 $ 11,000 $ 11,000 Accounts receivables is an asset account (Debtors account). Services provided will increase the balance as amount to be received and amount collected shall be deducted which is reflected in credit side of the account.

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