Therefore, the Accounts Receivable balance at December 31, 2022, is $29,900. This represents the total amount of outstanding customer invoices yet to be collected by Oriole Company at the end of the period.
To calculate the Accounts Receivable balance at December 31, 2022, we need to consider the beginning balance, credit sales, and collections made during December.
Beginning balance of Accounts Receivable: $18,820
Credit sales during December: $50,400
Collections during December: $40,320
To find the ending balance, we need to subtract the collections from the beginning balance and add the credit sales:
Ending balance = Beginning balance + Credit sales - Collections
Ending balance = $18,820 + $50,400 - $40,320
Ending balance = $29,900
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