On January 1, Davidson Services has the following balances:
Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method.
-At the end of January, the balance in Accounts Receivable is:

Question

On January 1, Davidson Services has the following balances: 
Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method.
-At the end of January, the balance in Accounts Receivable is:

Quizplus · Accepted Answer

The balance in Accounts Receivable is calculated by adding the beginning balance and any sales on account, then subtracting any collections or write-offs. The correct balance is $24,000 based on the given options.

On January 1, Davidson Services Has the Following Balances