Given the following T-account for Accounts Receivable:\[\begin{array}{c|c}\text{Debit} & \text{Credit} \\\hline\$5,000 & \\\$2,000 & \\ & \$1,500 \\\end{array}\]What is the ending balance of the Accounts Receivable T-account?

• A. \$5,500 credit
• B. \$5,500 debit
• C. \$7,000 debit
• D. \$5,500 debit

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the structure of a T-account. A T-account has two sides: the Debit side (left) and the Credit side (right). The ending balance is calculated by summing the debits and credits and finding the net difference.
2. Step 2: Add up all the amounts on the Debit side of the T-account. In this case, the Debit side has \$5,000 and \$2,000. The total Debit amount is calculated as: $5000+2000$.
3. Step 3: Add up all the amounts on the Credit side of the T-account. In this case, the Credit side has \$1,500. The total Credit amount is: $1500$.
4. Step 4: Subtract the total Credit amount from the total Debit amount to find the ending balance. The formula is: $7000-1500$, where \$7,000 is the total Debit and \$1,500 is the total Credit.
5. Step 5: Determine the type of balance (Debit or Credit). Since the Debit total is greater than the Credit total, the ending balance will be a Debit balance. The final balance is \$5,500 Debit.