Question

Based on the below transactions, IF you were to journalize and post them, state how much would be the balance of the accounts receivable account only and state what type of balance this account would have at the end of the period (debit or credit) (4 pts total). Note: You are not asked to journalize and post. Do only what is asked.

Owner invested $5,000 cash

Billed customers for services provided, $4,000

Purchased supplies on account, $1,000

Paid creditor, $200

Received $350 from customers on account

Provided services to customers and received cash, $200

Customers made payment of $500 on account

Answer 1

Account Receivable has $3150 at the end of period , it is debit Balance

Explanation working

1)			Debit	Credit
On Billing Customer for Service provided		Account Receivable	$4000
		Service Revenue		$4000
		(To record Service Revenue for Service provided on Account)
2) On Receipt of Payment from Customer		Cash	$350
		Account Receivable		$350
		(Being Payment made by customer
On service provide on cash		No Entry for account Receivable
Customer made a payment		Cash	$500
		Account Receivable		$500
		(Being payment receive from customer)

Account Receivable

	Debit		Credit
Sale Revenue	$4000	Cash	$350
		Cash	$500
Balance	3150

As there is Credit short ie Debit is more than credit , the side which is more it the balance of that account , hence Account Receivable has Debit Balance of $3150 at the end of Period