At the Beginning of January of the Current Year,Sorrel Co

question 59

Multiple Choice

At the beginning of January of the current year,Sorrel Co.'s ledger reflected a normal balance of $52,000 for accounts receivable.During January,the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500.Additionally,during January one customer paid Mikey $5,000 for services to be provided in the future.At the end of January,the balance in the accounts receivable account should be:

• A)$54,700.
• B)$49,700.
• C)$2,300.
• D)$54,300.
• E)$49,300.

---

Definitions:

Time Value

Time Value refers to the additional amount that an investor is willing to pay for an option or other financial instrument due to its potential to increase in value over time.

Time Value

The portion of an option's premium that is based on the amount of time until the expiration of the option contract.

Volatility

Refers to the degree of variation in the price of a financial instrument over time, indicating the risk associated with the price changes of that instrument.

Expiration

The date on which a financial contract or derivative expires, after which the contract is either settled or no longer valid.