The Seminole retainage receivable begins at $28,900. Current billing is $214,000 with 7.5% retainage, and $8,200 retainage is released. What ending retainage receivable remains?
Correct Answer
C) $36,750.00
Ending retainage receivable equals beginning retainage plus current retainage less retainage released.
Why This Is the Correct Answer
Ending retainage receivable equals beginning retainage plus current retainage less retainage released.
Why the Other Options Are Wrong
Option A: $44,950.00
$44,950.00 is above the supported result for retainage receivable; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $16,050.00
$16,050.00 is below the supported result for retainage receivable; it likely uses the wrong base, period, or account bucket.
Option D: $20,700.00
$20,700.00 is below the supported result for retainage receivable; it likely uses the wrong base, period, or account bucket.
Memory Technique
Ending and receivable live in different drawers; Billing Manager 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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