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Question 4 Not yet answered Marked out of 1.00 F Flag question At the beginning of 2017, Yummy Cupcakes, Inc. has the following ledger balances: Accounts Receivable $40,000 (Debit) Allowance for Bad Debts $7,000 (Credit) During the year, credit sales amounted to $810,000. Cash collected on credit sales amounted to $760,000, and $16,000 has been written off. Yummy Cupcakes uses the aging-of- receivables method to record bad debts expense. The estimate of uncollectible accounts was $26,000. The ending balance in the Allowance for Bad Debts is Select one: O A. $35,000 OB. $26,000 OC. $19,000 OD. $16,000 Question 5 Not yet answered Marked out of 1.00 F Flag question At the beginning of 2017, Smoothie Town, Inc. has the following account balances: Accounts receivable $44,000 (Debit) Allowance for Bad Debts $7,000 (Credit) During the year, credit sales were $820,000. Cash collected on credit sales was $750,000, and $18,000 was written off. Smoothie Town uses the aging-of-receivables method to record bad debts expense. The amount estimated as uncollectible was $26,000. The amount of Bad Debts Expense for 2017 is, Select one: A. $11,000 OB. $26,000 OC. $8,000 OD. $37,000
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