At 1 January, Davidson Services Has the Following Balances

question 39

Multiple Choice

At 1 January, Davidson Services has the following balances: During the year, Davidson had $104 000 of credit sales, collections of $100 000, and write- offs of $1 400.
Davidson records Bad debts expense at the end of the year using the percentage- of- sales method, and applies a rate of 1.1%, based on past history.
Prior to the year- end entry to adjust the Bad debts expense, what is the balance in Accounts receivable?

• A)$13 000
• B)$11 600
• C)$2 600
• D)$4 000

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Definitions:

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The state of being conscious of something, including the self, one's surroundings, or a particular concept.