Question

Pharoah corp uses the percentage-of-receivables basis to record bad debt expense. What is the ending balance of accounts receivable?

1) $520,000
2) $5,200
3) Cannot be determined
4) None of the above

Answer 1

The ending balance of accounts receivable cannot be determined from the given information.

Step-by-step explanation:

The ending balance of accounts receivable cannot be determined from the given information.

When a company uses the percentage-of-receivables basis to record bad debt expense, it estimates the amount of bad debts based on a percentage of accounts receivable. Without knowing the specific percentage used by Pharoah Corp, it is not possible to calculate the ending balance of accounts receivable.

Therefore, the correct answer is option 3) Cannot be determined.