Lashkova Company had accounts receivable of $100,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of $1,000,000, cash collections of $920,000, and accounts written off $30,000.

Compute the ending balance of accounts receivable.

Lashkova Company had accounts receivable of $100,000 on January 1, 2014. The only transactions that affected accounts receivable during 2014 were net credit sales of $1,000,000, cash collections of $920,000, and accounts written off $30,000.

Compute the ending balance of accounts receivable.

Sales will increase A/R; Cash collections will (decrease) A/R; Accounts written off are typically stored in an allowance account and decrease net A/R.