At the beginning of 2015, Peter Dots the following ledger balances:

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 2.5%. The ending balance of Accounts Receivable would be:

a. $80,000

b. $40,000

c. $18,000

d. $62,000

Transcribed Image Text:

Accounts Receivable 40,000 Allowance for Bad Debts 5,000 Bad Debts Expense Accounts Receivable 40,000 Allowance for Bad Debts 5,000 Bad Debts Expense

Answer rating: 100% (QA)

d 62000 Ending bal... View the full answer