At the Beginning of the Year, Accounts Receivable Were $45,000

question 5

Multiple Choice

At the beginning of the year, accounts receivable were $45,000 and the allowance for bad debts was $4,200.During the year, sales (all on account) were $180,000, cash collections were $165,000, bad debts expense totaled $3,100, and $2,600 of accounts receivable were written off as bad debts. The balance at the end of the year for the Accounts Receivable account was:

• A)$42,400.
• B)$54,300.
• C)$57,400.
• D)$60,000.

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Definitions:

Third Restatement

A reference in U.S. legal doctrine, particularly in the context of tort law, to the latest revision of a comprehensive guide on legal principles.

Principal Incapacitated

Principal incapacitated refers to a situation where the principal party in a legal or financial agreement is unable to make decisions or fulfill their role, due to physical or mental incapacity.

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The condition of an entity or individual’s standing in the eyes of the law, including rights, responsibilities, and current liabilities.

Power of Agent

The legal authority granted to an individual (agent) to make decisions and take actions on behalf of another person or entity (principal).