At the beginning of 2019, Gourmet Cupcakes Company has the following ledger balances:

Accounts Receivable $45,000 (Debit)
Allowance for Bad Debts $6000 (Credit)

During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to $780,000, and $18,000 has been written off. Gourmet Cupcakes uses the aging-of-receivables method to record bad debts expense. The estimate of uncollectible accounts was $28,000. The ending balance in the Allowance for Bad Debts is ________.
A) $40,000
B) $18,000
C) $28,000
D) $22,000


C) $28,000

Business

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