At the beginning of 2019,Statewide Delivery Company 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 $780,000,and $16,000 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 Company 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 $780,000,and $16,000 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

Accounts Receivable beginning balance + Credit Sales - Collections - Write offs = $44,000 + $800,000 - $780,000 - $16,000 = $48,000

At the Beginning of 2019,Statewide Delivery Company Has the Following