On 1 January,Davidson Services has the following balances:$\begin{array}{l}
\text { Accounts receivable }\
\begin{array}{ll|l}
\hline \text { Bal }& \$ 25,000 & \
\hline
\end{array}
\end{array}$

$\begin{array}{l}
\text { Bad debts expense }\
\begin{array}{ll|l}
\hline \text { Bal }& \$ 0 & \
\hline
\end{array}
\end{array}$Davidson has the following transactions during January: Credit sales of $120,000,collections of credit sales of $87,000 and write-offs of $16,000.Davidson uses the direct write-off method.At the end of January,the balance in Accounts receivable is :
A)$42,000.
B)$22,069.
C)$58,000.
D)$11,600.

Question

On 1 January,Davidson Services has the following balances:$\begin{array}{l}
\text { Accounts receivable }\
\begin{array}{ll|l}
\hline \text { Bal }& \$ 25,000 & \
\hline
\end{array}
\end{array}$

$\begin{array}{l}
\text { Bad debts expense }\
\begin{array}{ll|l}
\hline \text { Bal }& \$ 0 & \
\hline
\end{array}
\end{array}$Davidson has the following transactions during January: Credit sales of $120,000,collections of credit sales of $87,000 and write-offs of $16,000.Davidson uses the direct write-off method.At the end of January,the balance in Accounts receivable is :
A)$42,000.
B)$22,069.
C)$58,000.
D)$11,600.

Quizplus · Accepted Answer

The balance in Accounts Receivable is calculated as: Beginning balance ($25,000) + Credit sales ($120,000) - Collections ($87,000) - Write-offs ($16,000) = $42,000.

On 1 January,Davidson Services Has the Following Balances Accounts receivable Bal $25,000\begin{array}{l}\text { Accounts receivable }\\\begin{array}{ll|l}\hline \text { Bal }& \$ 25,000 & \\\hline\end{array}\end{array} Accounts receivable Bal ​$25,000​​​​

On 1 January,Davidson Services Has the Following Balances $\begin{array}{l}\text { Accounts receivable }\\\begin{array}{ll|l}\hline \text { Bal }& \$ 25,000 & \\\hline\end{array}\end{array}$