A Merritt Island owner invoice is $176,250. A $8,250 credit memo and a $119,500 payment are posted. What receivable balance remains?
Correct Answer
B) $48,500
The credit memo reduces the invoice, then the payment reduces the remaining receivable.
Why This Is the Correct Answer
The credit memo reduces the invoice, then the payment reduces the remaining receivable.
Why the Other Options Are Wrong
Option A: $56,750
$56,750 is above the supported result for accounts receivable reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $168,000
$168,000 is above the supported result for accounts receivable reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $56,750
$56,750 is above the supported result for accounts receivable reconciliation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Credit and memo live in different drawers; Billing Clerk tells which opens.
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.
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