Calculating trade receivables increase via T-account movements

Steps:

• Opening balance: $15,000
• Add credit sales: $15,000 +$85,000 = $100,000
• Subtract cash received: $100,000 -$65,000 = $35,000
• Subtract irrecoverable debts: $35,000 -$2,000 = $33,000 (ending balance)
• Increase: $33,000 -$15,000 = $18,000

Why A is correct:

• Matches the formula for receivables increase: opening + credit sales - cash received - irrecoverable debts, reflecting standard double-entry accounting for trade receivables.

Why the others are wrong:

• B. $30,000: Adds credit sales to opening but subtracts only cash received, ignoring irrecoverable debts.
• C. $33,000: Gives ending balance, not the increase from opening.
• D. $45,000: Subtracts only cash from credit sales, ignoring opening balance and irrecoverable debts.

Final answer: A