Question

On January​ 1, Five Star Services has the following​ balances: Accounts Receivable $ 26 comma 000 ​(debit) Bad Debts Expense $ 0 Five Star Services has the following transactions during​ January: Credit sales of $ 130 comma 000​, collections of credit sales of $ 87 comma 000​, and writeminusoffs of $ 16 comma 000. Five Star Services uses the direct writeminusoff method. At the end of​ January, the balance of Accounts Receivable is​ ________.

Answer 1

Answer:

$53,000

Explanation:

Data given in the question

Beginning Accounts Receivable = $26,000

Credit Sales = $130,000

Collections of credit sales  = $87,000

Write-offs = $16,000

So

As we know that

Ending Accounts Receivable = Beginning Accounts Receivable + Credit Sales - Collections of credit sales - Write-offs

= $26,000 + $130,000 - $87,000 - $16,000

= $53,000