At the beginning of 2019,Statewide Delivery,Inc.has the following account balances:

Bad Debts Expense $0
During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $790,000,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 3.5%.The ending balance of Accounts Receivable is ________.

Question

At the beginning of 2019,Statewide Delivery,Inc.has the following account balances:

Bad Debts Expense $0
During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $790,000,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 3.5%.The ending balance of Accounts Receivable is ________.

Quizplus · Accepted Answer

B)Accounts Receivable beginning balance + Credit Sales - Collections - Write offs = $42,000 + $800,000 - $790,000 - $18,000 = $34,000

At the Beginning of 2019,Statewide Delivery,Inc