On 1 January,Davidson Services Has the Following Balances

question 73

Multiple Choice

On 1 January,Davidson Services has the following balances:
Accounts receivable

Bad debts expense

Davidson has the following transactions during January: Credit sales of $120,000,collections of credit sales of $87,000 and write-offs of $16,000.Davidson uses the direct write-off method.At the end of January,the balance in Accounts receivable is :

• A) $42,000.
• B) $22,069.
• C) $58,000.
• D) $11,600.

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Definitions:

Batch Processing

The accumulation of transaction data until a certain point is reached, at which time several transactions are processed at once.

Transaction

A process of buying or selling goods or services, or any exchange of value between two or more parties.

Batch Processing

A method of processing data where a group of transactions is gathered over a period and processed together at once.