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5 October, 15:58

On January 1, 2015, the Accounts Receivable of Linda, Inc. had a debit balance of $180,000. During January, the company provided services for $700,000 on account. The company collected $230,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?

A) $470,000

B) $880,000

C) $650,000

D) $700,000

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  1. 5 October, 17:56
    0
    C

    Explanation:

    Here, we are asked to calculate the ending balance in the accounts receivable account at the end of January.

    To calculate this, we employ a mathematical approach;

    Mathematically;

    The closing balance in account receivables = opening balance + services performed on account - cash received during month

    From the question, we identify the following;

    The opening balance in accounts receivable = $180,000

    Services performed on account = $700,000

    cash received = $230,000

    we input these values into the equation;

    Closing balance = 180,000 + 700,000 - 230,000 = $650,000
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