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) $44,000
B) $66,000
C) $56,140
D) $18,000
B .Accounts Receivable beginning balance + Credit Sales - Collections - Write offs = $44,000 + $800,000 - $760,000 - $18,000 = $66,000
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