Sales on Account During the Month Totaled $78,000

question 18

Multiple Choice

Sales on account during the month totaled $78,000.Cash collections of accounts receivable during the month totaled $72,000.The balance in the Accounts Receivable account at the end of the month was $31,000.No accounts receivable were written off as uncollectible during the month.The balance in the Accounts Receivable account at the beginning of the month was:

• A)$25,000.
• B)$31,000.
• C)$37,000.
• D)$43,000.

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Definitions:

Formal Commitment

Refers to a binding agreement or pledge to engage in or refrain from a specified action.

Implied Contract

A contract that arises not from words of agreement but from the conduct of the parties.

Express Contract

A contract in which all the terms are clearly set forth in either written or spoken words.

Bilateral Contract

An agreement in which both parties make promises to perform certain acts or refrain from performing certain acts.