A & B Commercial Cleaning is a new business.During its first year of operations,credit sales were $42,000 and collections from credit sales were $31,000.One account for $625 was written off.Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible.What is the balance of Accounts Receivable at the end of the first year?

Question

Quizplus · Accepted Answer

Accounts Receivable = $42,000 - $31,000 - $625 = $10,375

A & B Commercial Cleaning Is a New Business