Question Help On January 1, Five Star Services has the following balances: Accounts Receivable $25,000 (debit) Bad Debts Expense $0 Five Star Services has the following transactions during January: Credit sales of $110,000, collections of credit sales of $85,000, and write-offs of $16,000. Five Star Services uses the direct write-off method. At the end of January, the balance of Accounts Receivable is er O A. $12,364 O B. $50,000 O C. $20,706 OD. $34,000 A receivable occurs when a business O A. sells goods or services to another party O B. has a monetary claim against a business or individual on account C. loans money to another party O D. All of the statements are correct. A& B Commercial Cleaning is a new business. During its first year of operations, credit sales were $44,000 and collections from credit sales were $36,000. One account for $700 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 4% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year? O A. $7,300 O B. $6,240 O C. $5,540 der O D. $8,000