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wrote...
Posts: 4891
2 years ago
At the beginning of 2017, Delicious Drinks, Inc. has the following account balances:

Accounts Receivable $44,000    (debit balance)
Allowance for Bad Debts $6,000    (credit balance)
Bad Debts Expense $0

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 3.5%. The ending balance of Accounts Receivable is ________.
A) $66,000
B) $18,000
C) $44,000
D) $56,140
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters
Edition: 5th
Authors:
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Posts: 2542
2 years ago
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wrote...
2 years ago
I posted this question a while back then forgot to check the forum lol Thanks for answering, you were right
wrote...
2 years ago
Glad to have helped!
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