On January 1,Davidson Services Has the Following Balances: Davidson

question 79

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 Bad Debts Expense is ________.

• A)$16,000
• B)$17,000
• C)$12,000
• D)$15,000

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Definitions:

Tangible Capital Assets

physical assets owned by a business that are used in its operations and have a useful life extending beyond a single accounting period.

Future Cash Flows

the projected cash receipts and payments a business expects to incur over a future period, crucial for financial modeling and valuation.

Fully Authorized

Pertains to a company having received all necessary approvals or sanctions to issue shares or undertake actions as per its governance framework or regulatory requirements.

Provincial Government

The level of government responsible for governing the affairs of a province or territory, including making laws on regional matters.