On january 1, five star services has the following balances: accounts receivable $ 28 comma 000 (debit) bad debts expense $ 0 five star services has the following transactions during january: credit sales of $ 140 comma 000, collections of credit sales of $ 90 comma 000, and writeminusoffs of $ 19 comma 000. five star services uses the direct writeminusoff method. at the end of january, the balance of accounts receivable is

At the end of January, the balance of Accounts Receivable is $ 59,000.

Explanation:

Given that,

Accounts Receivable - $ 28,000 (debit)

Bad Debts Expense - $ 0

Credit sales - $ 140,000

collections of credit sales - $ 90,000

Write minus offs - $ 19,000

Under write minus off method, the chances of bad debts is high which is important to recognized while doing the calculation of accounts receivable.

The balance of accounts receivable is computed below:

= Beginning balance of accounts receivable + credit sales - collection of credit sales - write minus off

=  $ 28, 000 + $ 140,000 - $ 90,000 - $ 19,000

= $ 59,000

Thus, at the end of January, the balance of Accounts Receivable is $ 59,000