The company uses a perpetual inventory system and made the following summary journal entries for the month.

Question:

1. If the inventory balance at the beginning of the month was $10,000, what is the inventory balance at the end of the month?
2. If the accounts receivable balance at the beginning of the month was $3,500, what is the accounts receivable balance at the end of the month?
3. What is the amount of gross profit for the month?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...