A Boca Raton contractor invoices $126,400 on a job. Sales returns and credits on that job total $3,900, and cash collected is $88,000. What net accounts receivable remains open?
Correct Answer
B) $34,500
Net receivable is the invoice less credits and collections: $126,400 - $3,900 - $88,000 = $34,500.
Why This Is the Correct Answer
Net receivable is the invoice less credits and collections: $126,400 - $3,900 - $88,000 = $34,500.
Why the Other Options Are Wrong
Option A: $30,600
$30,600 is below the supported result for accounts receivable reconciliation; it likely uses the wrong base, period, or account bucket.
Option C: $38,400
$38,400 is above the supported result for accounts receivable reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $42,300
$42,300 is above the supported result for accounts receivable reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Accounts drawer for Reconciling Customer'S: label net before counting dollars.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section One, Cash and Charge Sales, Accounts Receivable; use the job ledger figures in the stem and recompute the same accounting measure.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
The Lake Butler supplier credit agreement has a $500,000 limit and open commitments of $372,000. What status should purchasing report?
Next Question
A Gulf Breeze startup begins with owner capital of $95,000 and an approved startup draw of $18,000. What capital remains in the business?