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Accounts receivable, bad debts, credit sales, and cash collections analysis At the beginning of the year, accounts receivable were $144,000 and the allowance for bad debts was $11,500. During the year, sales (all on account) were $600,000, cash collections were $580,0000, bad debts expense totaled $14,200, and $12,000 of accounts receivable were written off as bad debts.
Required:
Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts.
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