Question

he following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 840,000 Credit sales for 2021 3,300,000 Accounts receivable written off during 2021 70,000 Collections from customers during 2021 3,100,000 Allowance for uncollectible accounts balance, 12/31/2021 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021

Answer 1

$970,000

Step-by-step explanation:

Accounts receivable balance, 1/1/2021 = $840,000

Credit sales for 2021 = $3,300,000

Collections from customers during 2021 = $3,100,000

Accounts receivable written off during 2021 = $70,000

Allowance for uncollectible account balance 12/31/2021 = $210,000

Goran report for accounts receivable before allowances at December 31, 2021 would be;

= Beginning accounts receivables + Credit sales for 2021 - Accounts receivables written off during 2021 - Collections from customers during 2021

= $840,000 + $3,300,000 - $70,000 - $3,100,000

= $970,000