On January 1, Davidson Services Has the Following Balances

question 44

Multiple Choice

On January 1, Davidson Services has the following balances:
Davidson has the following transactions during January: Credit sales of $100,000, collections of credit sales of $85,000, and write-offs of $15,000. Davidson uses the direct write-off method.
-At the end of January, the balance in Accounts Receivable is:

• A) $16,000.
• B) $24,000.
• C) $68,000.
• D) $28,000.

---

Definitions:

Bona Fide Purchaser

A Bona Fide Purchaser is someone who buys property in good faith, without notice of any other party's claim to the property or any defects in the title.

Right to Redeem

The legal right allowing a debtor to reclaim ownership of property by paying off a loan or other obligation, usually within a specific period of time after a foreclosure sale.

Secured Party

An individual or organization that holds an interest in a security agreement on property offered as collateral, ensuring payment or performance of some obligation.

Disposition

In legal and financial contexts, it refers to the act of disposing of an asset through sale, assignment, lease, or other transfer method.