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Home Q & A Board Other Fields Homework Help Business Accounting
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H3Ko H3Ko
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8 years ago
At the beginning of 2017, Elixir, Inc. has the following account balances:

Accounts Receivable $40,000    (debit balance)
Allowance for Bad Debts $5,000    (credit balance)
Bad Debts Expense $0

During the year, credit sales amounted to $850,000. 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 2.5%. The ending balance in the Allowance for Bad Debts is ________.
A) $8,250
B) $3,250
C) $6,000
D) $5,000
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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Mrgo-breedMrgo-breed
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8 years ago
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H3Ko Author
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#2
8 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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#3
8 years ago
Excellent Slight Smile
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#4
5 years ago
Is this helpful for homework?
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#5
5 years ago
This helps out alot thanks.
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#6
4 years ago
THX
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#7
4 years ago
Thanks a lot for the help
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