John Den Bear Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $600,000 and customers' accounts collected were $590,000. Also, $4,000 in worthless accounts was written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts? A) $130,000 B) $126,000 C) $154,000 D) $120,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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Chapter6: Business Expenses
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John Den Bear Company had a $150,000 beginning
balance in Accounts Receivable and a $6,000 credit
balance in the Allowance for Doubtful Accounts. During
the year, credit sales were $600,000 and customers'
accounts collected were $590,000. Also, $4,000 in
worthless accounts was written off.
What was the net amount of receivables included in the
current assets at the end of the year, before any provision
was made for doubtful accounts?
A) $130,000
B) $126,000
C) $154,000
D) $120,000
Transcribed Image Text:John Den Bear Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $600,000 and customers' accounts collected were $590,000. Also, $4,000 in worthless accounts was written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts? A) $130,000 B) $126,000 C) $154,000 D) $120,000
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