On January 1st, ABC company had accounts receivables of $50,000 and Allowance for Doubtful Accounts credit balance of $5,000 Cash balance of $90,000, Inventory balance of 186,000. During the year ABC had the following transactions: a) Sales of 300,000 (200,000 on account and $100,000 cash). The cost of the goods sold equaled 170,000. b) ABC had collections on Accounts receivable of 90,000
