The Balance in Accounts Receivable at the Beginning of the Year

question 163

Multiple Choice

The balance in Accounts Receivable at the beginning of the year was $500,000.The balance in Accounts Receivable at the end of the year was $700,000.Customer accounts of $400,000 were written off.The company collected $4,000,000 from credit customers and $1,000,000 from cash customers.What are credit sales for the year?

• A)$400,000
• B)$4,000,000
• C)$4,400,000
• D)$4,600,000

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Definitions:

Laissez-Faire Society

A society where transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs, and enforced monopolies.

Social Control

Mechanisms, strategies, and processes that regulate individual and group behavior, aiming to maintain conformity and compliance within a society.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Growth of the State

The process of increase in the size and scope of government activities, often referring to the expansion of its regulatory, taxing, and coercive capacities.