At the beginning of the year, accounts receivable were $45,000 and the allowance for bad debts was $4,200.During the year, sales (all on account)were $180,000, cash collections were $165,000, bad debts expense totaled $3,100, and $2,600 of accounts receivable were written off as bad debts. The balance at the end of the year for the Accounts Receivable account was:
A)$42,400.
B)$54,300.
C)$57,400.
D)$60,000.

Question

Quizplus · Accepted Answer

The ending balance for Accounts Receivable is calculated as follows: Beginning Accounts Receivable ($45,000) + Sales ($180,000) - Cash Collections ($165,000) - Write-offs ($2,600) = $57,400.

At the Beginning of the Year, Accounts Receivable Were $45,000