18.

At the beginning of 2019, Statewide Delivery, Inc. has the following account balances:

Accounts Receivable

$ 43,000

(debit balance)

Allowance for Bad Debts

$ 7,000

(credit balance)

Bad Debts Expense

$0

During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to

$750,000, and $17,000 has been written off. At the end of the year, the company adjusted for

bad debts expense using the percent-of-sales method and applied a rate, based on past history,

of 2.5%. The ending balance of Accounts Receivable is ________.

A.

$ 96,000

B.

$ 43,000

C.

$ 40,325

D.

$ 17,000