Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Radical Reporting Writing Better Audit Risk Compliance And Information Security Reports

Authors: Sara I. James

1st Edition

1032106042, 978-1032106045

More Books

Students also viewed these Accounting questions