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

question 52

Multiple Choice

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.

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Definitions:

Public Policy

The principles, often unwritten, on which social laws are based, guiding the governing bodies in their management and administration of the nation.

Bailee

An individual or entity given temporary custody of someone else's property under a bailment agreement.

Liability

The state of being legally responsible for something, often referring to the obligation to repay debts or to compensate for loss or damage.

Professional Bailee

A person or entity specialized in the custody or management of others' property, often for a fee.