At the beginning of 2015, Peter Dots has the following ledger balances: 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 percent-of-sales method and applied a rate, based on past history, of 2.5%.
-Refer to the table above,The ending balance of Accounts Receivable would be:

Question

At the beginning of 2015, Peter Dots has the following ledger balances:  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 percent-of-sales method and applied a rate, based on past history, of 2.5%. 
-Refer to the table above,The ending balance of Accounts Receivable would be:

Quizplus · Accepted Answer

The ending balance of Accounts Receivable is calculated by adding the beginning balance to any sales on account and subtracting any collections or write-offs. The correct choice is based on the given data in the table.

At the Beginning of 2015, Peter Dots Has the Following