At the beginning of 2019, C. Delorenzo Statewide Delivery, I…
At the beginning of 2019, C. Delorenzo Statewide Delivery, Inc. has the following account balances: Accounts Receivable $42,000 (debit balance)Allowance for Bad Debts $9,000 (credit balance)Bad Debts Expense $0 During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $790,000, 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 3.5%. The ending balance of Accounts Receivable is ________. (Hint: set up a T account for Account Receivable with the beginning balance, record the credit sales and collections and write-off. Then see the result) A) $42,000B) $34,000C) $57,120D) $18,000