Question
At the beginning of 2017, Delicious Drinks, Inc. has the following account balances: Accounts Receivable $44,000 (debit balance) Allowance for Bad Debts $6,000 (credit balance)
At the beginning of 2017, Delicious Drinks, Inc. has the following account balances:
Accounts Receivable $44,000 (debit balance)
Allowance for Bad Debts $6,000 (credit balance)
Bad Debts Expense $0
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the
percentminusofminussales
method and applied a rate, based on past history, of 3.5%. The ending balance of Accounts Receivable is ________.
A.
$56,140
B.
$66,000
C.
$44,000
D.
$18,000
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