On January 1, J. Chin Star Services has the following balanc…

On January 1, J. Chin Star Services has the following balances: Accounts Receivable $24,000 (debit)Bad Debts Expense  $0 Five Star Services has the following transactions during January: Credit sales of $120,000, collections of credit sales of $86,000, and write-offs of $20,000. Five Star Services uses the direct write-off method. At the end of January, the balance of Accounts Receivable is ________. (Hint: set up a T account for Account Receivable with the beginning balance and work all the transactions accordingly in that account)A) $14,333B) $38,000C) $27,907D) $58,000

At the beginning of 2019, B. Dicola, Inc. has the following…

At the beginning of 2019, B. Dicola, Inc. has the following account balances: Accounts Receivable $41,000     (debit balance)Allowance for Bad Debts $6,000     (credit balance)Bad Debts Expense $0 During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to $780,000, and $15,000 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 2.5%. The ending balance in the Allowance for Bad Debts is ________. (Hint: set up a T account for the Allowance account with the beginning balance and plug the numbers for the write-off and Bad Debts estimate entry then determine the balance)A) $6,000B) $5,500C) $10,500D) $11,500