Answer:
The correct answer is C
Explanation:
Accounts receivable is the term of accounting, which is defined as the legally enforceable claims for the payment that is held through a business for the goods supplied as well as service rendered that the client have ordered but not paid.
Computing the balance of accounts receivable as:
Accounts receivable balance = Accounts receivable balance as on December 1, 2014 + (Credit revenue - Received revenue)
where
Accounts receivable balance as on December 1, 2014 is $1,200
Credit revenue is $4,800
Received revenue is $4,000
So, putting the values above:
Accounts receivable balance = $1,200 + ($4,800 - $4,000)
Accounts receivable balance = $1,200 + $800
Accounts receivable balance = $2,000
It is positive, so, it is debit balance
