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On January 1, Five Star Services has the following balances:
Accounts Receivable - $25,000 (debit)Bad Debts Expense - $0
Problem 1: Five Star Services has the following transactions during January: Credit sales of $120,000, collections of credit sales of $87,000, and write-offs of $18,000. Five Star Services uses the direct write-off method. At the end of January, the balance of Accounts Receivable is ________.
a. 13,050
b. 40,000
c. 24,828
d. 58,000
Financial Statement Analysis and Preparation
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