Crossland Company reported sales on its income statement of $435,000. On the statement of cash flows, which used the direct method, sales adjusted to a cash basis were $455,000. Crossland Company reported the following account balances on its balance sheet for the year:
|
Account |
Ending |
Beginning |
|
Accounts receivable |
$30,000 |
? |
|
Prepaid expenses |
$14,000 |
$11,000 |
|
Inventory |
$18,000 |
$20,000 |
Based on this information, the beginning balance in accounts receivable was:
A) $50,000
B) $40,000
C) $30,000
D) $20,000