Question

Carmichael Inc. has a beginning balance in Accounts Receivable of $100,000 at June 1. On June 24, Carmichael sells $20,000 of merchandise to K. Low, terms 2/10, n/30. Assuming just this one transaction occurred, what is the ending balance in Accounts Receivable at June 30 under the gross method

Answer 1

$120,000

Step-by-step explanation:

Particulars Amount

Beginning balance in accounts receivables A/C $100,000

Add: Credit sales $20,000

Ending balance in accounts receivables A/C $120,000