Answer:
Ending balance in accounts receivable = $57,400.00
Explanation:
given data
accounts receivable = $45,000
bad debts = $4,200
sales = $180,000
to find out
balance at the end of the year for the Allowance for Bad Debts
solution
we know here at Beginning accounts receivable balance is = $45,000.00
and Accounts written off = $2,600.00
so Subtotal is $45000 - $2600 = $42,400
and
so Ending balance in accounts receivable is
Ending balance in accounts receivable = subtotal + Credit Sales - Collection from receivable
put here value
Ending balance in accounts receivable = $42,400 + $180,000 - $165,000
Ending balance in accounts receivable = $57,400.00
