Question

Company A reports revenue of $386,000 but collects $303,000. At the end of the year, accounts receivable is equal to:

A) $83,000
B) $303,000
C) $386,000
D) $0

Answer 1

To calculate Company A's accounts receivable, subtract the amount collected ($303,000) from the reported revenue ($386,000), resulting in $83,000. Thus, the accounts receivable at the end of the year is $83,000. So, the correct answer to the question is A) $83,000.

Step-by-step explanation:

The question is asking to calculate the amount of accounts receivable at the end of the year for Company A. This figure represents the money that customers owe to the company for goods or services that have been delivered or used but not yet paid for. To find the accounts receivable, we can use the revenue reported by the company and subtract the amount that has actually been collected.

Company A reports revenue of $386,000 but collects $303,000. Therefore, the accounts receivable can be calculated as follows:

• Accounts Receivable = Reported Revenue - Collected Amount
• Accounts Receivable = $386,000 - $303,000
• Accounts Receivable = $83,000

So, the correct answer to the question is A) $83,000.