Calculating Accounts Receivable for Moore Co.
Moore Co.'s Accounts Receivable Calculation
Moore Co. had a beginning balance in accounts receivable of $12,000. During the year, it had credit sales of $150,000. Moore received payments on account of $140,000. At the end of the year, accounts receivable has a:
Final answer:
The accounts receivable at the end of the year for Moore Co. is $22,000.
Explanation:
Accounts receivable at the end of the year can be calculated by subtracting the payments received during the year from the beginning balance of accounts receivable and adding the credit sales. In this case, the beginning balance of accounts receivable was $12,000, credit sales were $150,000, and payments received were $140,000.
To find the accounts receivable at the end of the year, we can use the following equation:
Accounts Receivable at End of Year = Beginning Balance + Credit Sales - Payments Received
Plugging in the given values, we get:
Accounts Receivable at End of Year = $12,000 + $150,000 - $140,000 = $22,000
Therefore, the accounts receivable at the end of the year is $22,000.