At the Beginning of 2019,Gourmet Cupcakes Company Has the Following

question 137

Multiple Choice

At the beginning of 2019,Gourmet Cupcakes Company has the following ledger balances: Accounts Receivable $45,000 (Debit)
Allowance for Bad Debts $6000 (Credit)
During the year,credit sales amounted to $820,000.Cash collected on credit sales amounted to $780,000,and $18,000 has been written off.Gourmet Cupcakes uses the aging-of-receivables method to record bad debts expense.The estimate of uncollectible accounts was $28,000.The ending balance in the Allowance for Bad Debts is ________.

• A) $40,000
• B) $18,000
• C) $28,000
• D) $22,000

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