Question

A & B Commercial Cleaning is a new business. During its first year of operations, credit sales were $40,000 and collections from credit sales were $35,000. One account for $650 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year? A. $3550 B. $5000 C. $4350 D. $4200

Name: a b commercial cleaning is a new business during its first year of operations credit sales were 40000 and collections from credit sales were 35000 one account for 650 was written off managem 97722
Uploaded: 2023-07-17T02:54:00-08:00
Duration: 1 min 30 s
Channel: Supreeta N
Description: a b commercial cleaning is a new business during its first year of operations credit sales were 40000 and collections from credit sales were 35000 one account for 650 was written off managem 97722

          A & B Commercial Cleaning is a new business. During its first year of operations, credit sales were $40,000 and collections from credit sales were $35,000. One account for $650 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year?

A. $3550
B. $5000
C. $4350
D. $4200

a b commercial cleaning is a new business during its first year of operations credit sales were 40000 and collections from credit sales were 35000 one account for 650 was written off managem 97722

Added by Arthur C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

07/17/2023

Step 1

Calculate the total amount of Accounts Receivable at the end of the first year. = $40,000 + $35,000 = $75,000 Show more…

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A & B Commercial Cleaning is a new business. During its first year of operations, credit sales were $40,000 and collections from credit sales were $35,000. One account for $650 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year? A. $3550 B. $5000 C. $4350 D. $4200