Assume that beginning accounts receivable are $30,000, that there are sales on account of $20,000 during the period, and customers paid $10,000 on their accounts. What is the ending Accounts Receivable?

$40,000

Explanation:

The accounts receivables represents the amount of sales made to customers on account that are yet to be settled.

As such, the receipt of cash from such customers reduces the account receivable balance while the sale of goods/rendering of services to customers on account increases the account balance.

Hence in an equation format,

Opening balance + credit sales - cash received = closing balance

$30,000 + $20,000 - $10,000 = ending balance

Ending balance = $40,000

the correct answer is - no.

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