At the Beginning of 2015,Elixir Inc

question 131

Multiple Choice

At the beginning of 2015,Elixir Inc.has the following ledger balances: During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $760,000 and $18,000 has been written off.At the end of the year,company adjusted for bad debts expense using the percent-of-sales method and applied a rate,based on past history,of 2.5%.
-The ending balance in Bad Debts Expense would be ________.

• A)$20,000
• B)$40,000
• C)$28,000
• D)$27,000

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