During the year, credit sales amounted to $800,000. cash collected on credit sales amounted to $780,000, and $16,000 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

Bad debt expense = $28000

Ending balance = $4000

Explanation:

given data

Credit sales= $800000

Cash collection = $780,000

Write off = $16,000

rate = 3.5 %

to find out

ending balance of Accounts Receivable is

solution

first we get Bad debt expense that is express as

Bad debt expense = 800000 × 3.5%

Bad debt expense = $28000

and

Ending balance is express as

Ending balance = Credit sales - Cash collection - Write off     1

put here value

Ending balance = $800000  - $780,000 - $16,000

Ending balance = $4000