At January 1, Davidson Services Has the Following Balances

question 1

Multiple Choice

At January 1, Davidson Services has the following balances: Davidson has the following transactions during January:
Credit sales of $80,000, collections of $76,000, and write-offs of $12,000.
Davidson uses the direct write-off method. At the end of January, the balance in Accounts receivable is:

• A)$16,000.
• B)$4,000.
• C)$68,000.
• D)$28,000.

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