At the Beginning of 2016,Peter Dots Has the Following Ledger

question 78

Multiple Choice

At the beginning of 2016,Peter Dots has the following ledger balances:
Accounts receivable

Allowance for doubtful debts

Bad debts expense

During the year,credit sales amounted to $800,000.Cash collected on credit sales amounted to $780,000 and $18,000 was written off.At the end of the year,the company adjusted for bad debts expense using the percentage of sales method and applied a rate,based on past history,of 3.5%.The ending balance of Accounts receivable would be:

• A) $18,000
• B) $40,000
• C) $42,000
• D) $56,700

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Definitions:

Licensee

An individual or entity that has been granted the right to use, operate under, or engage in activities protected by another's intellectual property rights.

Trespassers

Individuals who enter or remain on a property without the permission or legal right to do so.

Possessor's Consent

Approval legal definied by the owner or holder of property for another party to use or occupy that property.

Personal Injury

Physical or psychological harm to a person resulting from someone else's negligence, intentional actions, or strict liability.