Question

At the beginning of the current period, a company had balances in accounts receivable of 200 and in allowance for doubtful accounts of 10 (credit). During the period, it had net credit sales of 70 and collections of 60. It wrote off as uncollectible accounts receivable of 7. However, a 4 account previously written off as uncollectible was recovered before the end of the current period. What is the ending balance in the accounts receivable account?

Answer 1

To calculate the ending balance in the accounts receivable account, we need to consider the various transactions that occurred during the period. Starting with the beginning balance of $200, we add the net credit sales of $70 and subtract the collections of $60.

Step-by-step explanation:

To calculate the ending balance in the accounts receivable account, we need to consider the various transactions that occurred during the period.

Starting with the beginning balance of $200, we add the net credit sales of $70 and subtract the collections of $60. This gives us a balance of $210.

Next, we subtract the accounts written off as uncollectible, which is $7. This brings the balance down to $203.

Finally, we add the previously written-off account that was recovered, which is $4. This increases the balance to $207. Therefore, the ending balance in the accounts receivable account is $207.