At the Beginning of the Year, Accounts Receivable Were $39,000

question 53

Essay

At the beginning of the year, accounts receivable were $39,000 and the allowance for bad debts was $2,400.During the year, sales (all on account)were $120,000, cash collections were $114,000, bad debts expense totaled $1,700, and $2,000 of accounts receivable were written off as bad debts.
Required:
Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts.(Hint: Use T-accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.)

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Definitions:

U.S. Citizens

Individuals who either were born in the United States or have gone through the naturalization process to legally attain citizenship status in the United States.

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and private investors.

Future Generations

The forthcoming populations that will live on Earth in the future, whose interests are considered in sustainable development and environmental conservation.

Debt Service

The cash required to cover the repayment of interest and principal on a debt for a particular period.