At the beginning of the year, accounts receivable were $45,000 and the allowance for bad debts was $4,200. During the year, sales (all on account) were $180,000, cash collections were $165,000, bad debts expense totaled $3,100, and $2,600 of accounts receivable were written off as bad debts.

The balance at the end of the year for the Accounts Receivable account was:

a.$57,400

b.$60,000

c.$42,400

d.$54,300

correct option is a.$57,400

Explanation:

given data

Beginning accounts receivable = $45,000

bad debts = $4,200

sales = $180,000

cash collections = $165,000

bad debts expense = $3,100

Accounts written off = $2,600

solution

we get here Ending balance in accounts receivable that is express as

Ending balance in accounts receivable = Beginning accounts receivable - Accounts written off + sales - cash collections ... 1

put here value and we get

Ending balance in accounts receivable = $45,000 - $2,600 + $180,000 - $165,000

Ending balance in accounts receivable = $57,400

so correct option is a.$57,400