An Individual Family's Account Receivable
date Descrip Debit Credit Balance
Jan 5 Week 90.00 90.00
Jan 12 " 150.00 -----
Jan 16 Payment 180.00 -----
Jan 19 Week 150.00 -----
1- What was the family's balance after paying you on Jan.16?
A $0 B $ 240 C $ 60 D $ 420
2- What is the family's current(most recent) balance?
A $ 330 B $ 210 C $ 570 D $0
The answer for me are:
1- B $ 240 2- B $ 210
To determine the answers to these questions, we need to calculate and track the balance after each transaction. Let's go through the calculations step by step:
1. What was the family's balance after paying on Jan. 16?
As per the account statement, on Jan. 16, a payment of $180.00 was made. To calculate the new balance, subtract the credit amount (payment) from the previous balance:
Previous balance: $150.00
Payment: -$180.00 (negative sign denotes outgoing payment)
$150.00 - $180.00 = -$30.00
Since the debit or credit column is empty after this transaction, we can infer that the negative balance indicates an outstanding credit of $30.00, meaning the family still owes $30.00.
The correct answer is B) $240.00 (Negative balance means the family owes money).
2. What is the family's current (most recent) balance?
To calculate the current balance, we need to consider the balance from the previous transaction and the subsequent transactions. Since the account statement does not provide any further transactions, the most recent balance is the previous balance from the last transaction.
The previous balance after the Jan. 16 transaction was -$30.00.
The correct answer is B) $210.00 (The most recent balance is -$30.00, indicating that the family still owes $210.00).
Therefore, the answer for question 1 is B) $240.00 and the answer for question 2 is B) $210.00.