At the Beginning of January of the Current Year, Thomas

question 105

Multiple Choice

At the beginning of January of the current year, Thomas Law Center'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 Thomas $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.

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Definitions:

Prospecting

The act of searching for potential customers or clients to generate new business opportunities.

Qualified Prospect

A Qualified Prospect is a potential customer who has been assessed and determined to fit the target market's criteria, showing both interest in and the capacity to purchase a product or service.

Purchasing Agent

An individual who is responsible for buying products, equipment, or services for a company or organization, often negotiating terms and prices.

Secretary

A person employed to handle administrative and office tasks, such as scheduling meetings, managing communications, and maintaining records.