At the Beginning of 2017,Delicious Drinks,Inc

question 39

Multiple Choice

At the beginning of 2017,Delicious Drinks,Inc.has the following account balances:

Bad Debts Expense $0
During the year,credit sales amounted to $810,000.Cash collected on credit sales amounted to $770,000,and $17,000 has been written off.At the end of the year,the 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 of Accounts Receivable is ________.

• A)$40,000
• B)$63,000
• C)$40,500
• D)$17,000

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