Question

Accounts Receivable: $24,000Allowance for Uncollectible Accounts: $1,000During the year there were $450,000 of credit sales, $460,000 of collections from credit customers, and $3,700 of write-offs of delinquent accounts. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method, and applied a rate, based on past history, of 1.2%. At the end of the year, what was the balance in the Accounts receivable

Answer 1

Answer: $10,300

Step-by-step explanation:

The following can be deduced from the question:

Opening balance of the account receivable = $24,000

Accounts receivable after the credit sales would be calculated as:

= $24,000 + $450,000

= $474,000

We then calculate the accounts receivable after the collection of credit which will be:

= $474,000 - $460,000

= $14,000

Therefore, the the balance in the accounts receivable would be:

=$14,000 - $3,700

= $10,300