Question

Consider the following account starting balances and journal transactions involving these accounts.
Use T-accounts to record the starting balances and organize the offsetting entries for the transactions.

The starting balance of Accounts Receivable is $3,600
The starting balance of Cash is $12,500
The starting balance of Inventory is $5,200

Date	Accounts and Explanation	Debit	Credit
Jan 19	Cash	40
	Inventory		40
	Sold and delivered product to customer at cost
Jan 20	Cash	13
	Accounts Receivable		13
	Received customer payment
Jan 21	Inventory	14
	Cash		14
	Bought manufacturing supplies for cash

What is the final amount in Accounts Receivable?

Answer 1

The opening balance of Accounts Receivable is $3600

Now we need to focus on the Journal Entries to determine what their impact would be on the amount of Accounts Receivable.

The Journal Entry made on Jan 19 is simply a Cash Sale.

Goods are sold for cash here and thus it would not effect the amount of Accounts Receivable.

Accounts Receivable will only change if there is a Credit Sale or when Payment is received from Customers for the goods sold to them on credit.

The Journal Entry made on Jan 20 is Cash Received from Customer to whom goods were sold on Credit.

This would reduce the amount of Accounts Receivable because cash was paid by the customer and his dues will be reduced to the extent of cash paid. Accounts Receivable will reduce by $13.

The Journal Entry made on Jan 21 is simply a Cash Purchase of goods.

This would have no impact on the Amount of Accounts Receivable.

Thus taking in Consideration the above explanation the final amount of Accounts Receivable would be

$3600 - $13

=$3587