Ending debit balances are Cash $17,000, Accounts Receivable $6,000, and Wages Expense $9,000. Ending credit balances are Common Stock $20,000 and Service Revenue $12,000.
This adds the three entries' activity: $12,000 + $6,000 + $9,000 = $27,000. A trial balance instead lists ending balances, including the opening accounts.
Failing to reduce Accounts Receivable for the collection would leave $38,000 of debit balances, but only $32,000 of credit balances. It would not produce equal $38,000 totals.
This nets revenue and expense before preparing the unadjusted trial balance instead of listing their separate balances.
Answer: A
Cash is $17,000 ($20,000 + $6,000 - $9,000). Accounts Receivable is $6,000 ($12,000 - $6,000), and Wages Expense is $9,000. Debit balances total $32,000. Common Stock is $20,000 and Service Revenue is $12,000, so credit balances also total $32,000.