Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 27

Accounts receivable, bad debts, credit sales, and cash collections analysis At the beginning of the year, accounts receivable were $72,000 and the allowance for bad debts was $5,750. During the year, sales (all on account) were $300,000, cash collections were $290,000, bad debts expense totaled $7,100, and $6,000 of accounts receivable were written off as bad debts.
Required:
Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint: Use T-accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.)