Accounting -During the year, credit sales amounted to $800,000
Question # 00114072
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Updated on: 10/07/2015 01:29 PM Due on: 11/06/2015
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000, and $18,000 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 would be:
$18,000
$40,000
$80,000
$62,000
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Rating:
/5
Solution: Accounting -During the year, credit sales amounted to $800,000