jay company started year 2 with a beginning balance of $10,000 in accounts recei

ID: 2335606 • Letter: J

Question

jay company started year 2 with a beginning balance of $10,000 in accounts receivable. during the year, revenue on account amounted to $25,000. cash collections of accounts receivable amounted to $5,000. expenses for the period were $2,100. the company paid dividends of $450. based on this information along, what is the ending balance in accounts receivable for year 2?
jay company started year 2 with a beginning balance of $10,000 in accounts receivable. during the year, revenue on account amounted to $25,000. cash collections of accounts receivable amounted to $5,000. expenses for the period were $2,100. the company paid dividends of $450. based on this information along, what is the ending balance in accounts receivable for year 2?

Explanation / Answer

Ending balance in accounts receivable for year 2 = $30000

Explanation;

Ending balance in accounts receivable for year 2 will be calculated as follow;

Beginning balance in accounts receivable for year 2

$10000

+ Revenue on account for the year

$25000

- Cash collected from accounts receivable

($5000)

Ending balance in accounts receivable for year 2

$30000