question archive 18)At the beginning of 2019, Statewide Delivery, Inc
Subject:AccountingPrice: Bought3
18)At the beginning of 2019, Statewide Delivery, Inc. has the following account balances:
Accounts Receivable
$ 43,000
(debit balance)
Allowance for Bad Debts
$ 7,000
(credit balance)
Bad Debts Expense
$0
During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to
$750,000, and $17,000 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 is ________.
A.
$ 96,000
B.
$ 43,000
C.
$ 40,325
D.
$ 17,000