On January 1,2012,Lexmark Company's Accounts Receivable Account Had a Debit

question 27

Multiple Choice

On January 1,2012,Lexmark Company's Accounts receivable account had a debit balance of $10,000.During January,2012,the company billed customers for services in the amount of $300,000.Also during January,the company collected $240,000 from its customers on account.What was the balance in the Accounts receivable account at the end of January?

• A) $60,000
• B) $250,000
• C) $70,000
• D) $10,000

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Definitions:

Classifications of Corporations

The grouping of corporations into categories based on certain characteristics, such as purpose, ownership, or place of incorporation.

Corporations

Legal entities established by individuals, shareholders, or stockholders, with separate rights and liabilities distinct from those of its members.

Articles of Incorporation

Documents filed with a government body to legally establish a corporation, including details like the firm's name, purpose, and structure.

Incorporators

Individuals who establish a corporation by preparing and filing the necessary legal documents with the appropriate state authority.