Answer:
Based on this information, the December 31, Year 3
Balance in the accounts receivable account isa.
$41,000
Step-by-step explanation:
Dr Accounts Receivable $ 52,000
Cr Allowance for doubtful accounts $ 1,400
- Omega earned $220,000 of revenue on account.
- When the company make credit sales, it means a Debit in the Accounts Receivable.
Dr Accounts Receivable $ 220,000
Cr SALES $ 220,000
- (2) Collected $230,000 cash from accounts receivable.
- When the company collect those credit sales the company record a credit on the accounts receivable.
Dr CASH $ 230,000
Cr Accounts Receivable $ 230,000
- (3) Wrote-off $1,000 of accounts receivable as uncollectible.
- If the company wrote off some customer accounts, it impacts in the Accounts receivable as credit because it has a negative impact in the credit sales of the company.
Dr Allowance for Uncollectible Accounts $ 1.000
Cr Accounts Receivable $ 1.000
The final balance of those movements it's detailed as follows:
FINAL Balance
Dr Accounts Receivable $ 41.000