At the beginning of 2015,Elixir Inc.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%.
-The ending balance of Accounts Receivable would be ________.

Question

At the beginning of 2015,Elixir Inc.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%.
-The ending balance of Accounts Receivable would be ________.

Quizplus · Accepted Answer

The ending balance of Accounts Receivable is calculated by adding the beginning balance and any sales on account, then subtracting any collections or write-offs. The correct answer is $62,000 based on the given options.

At the Beginning of 2015,Elixir Inc