On 1 January,Davidson Services Has the Following Balances $\begin{array}{l}\text { Accounts receivable }\\\begin{array}{ll|l}\hline \text { Bal }& \$ 23,000 & \\\hline\end{array}\end{array}$

question 62

Multiple Choice

On 1 January,Davidson Services has the following balances: $\begin{array}{l}\text { Accounts receivable }\\\begin{array}{ll|l}\hline \text { Bal }& \$ 23,000 & \\\hline\end{array}\end{array}$

$\begin{array}{l}\text { Bad debts expense }\\\begin{array}{ll|l}\hline \text { Bal }& \$ 0 & \\\hline\end{array}\end{array}$ Davidson has the following transactions during January: Credit sales of $100,000,collections of credit sales of $85,000,and write-offs of $20,000.Davidson uses the direct write-off method.At the end of January,the balance in Bad debts expense is:

• A)$23,529
• B)$23,000
• C)$20,000
• D)$17,000

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Definitions:

Earned-Income Strategies

Business activities initiated by nonprofit organizations that directly generate revenue as a result of the goods or services they offer, contributing to their financial sustainability.

Earned Income

Revenue generated from goods or services offered by an organization.

Partnerships

Cooperative relationships between people or groups, often formalized by agreements, working toward common goals or business ventures.

Intelligent Failure

The concept of learning valuable lessons from the experiments and endeavors that do not succeed, thereby contributing to future success through improved knowledge and understanding.