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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