Reference no: EM132630496

Question - ABC Company had the following transactions during January:

1. Jan 1 Issued $100,000 in stock to owners in exchange for cash to start the business.

2. Jan 5 Borrowed $50,000 from a friend to be paid back in future.

3. Jan 6 Gave 5,000 on his own to a friend to be received back in future.

4. Jan 10 Purchase equipment by paying cash for $25,000.

5. Jan 15 Paid January rent of $2,400 for the office space (hint: since this is for January, record as rent expense)

6. Jan 18 Performed services for customers and received cash immediately for $8,000.

7. Jan 20 Purchased $2,000 in supplies on account.

Required - At the end of month of January, find the balance in account receivable?

a. 50,000

b. 45,000

c. 56,000

d. 55,000