Question

Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $475,000 and $1,470, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $333,000 and $304,000, respectively, and $1,870 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:

Answer 1

the ending account receivable balance is $502,130

Step-by-step explanation:

The computation of the ending account receivable balance is given below:

= Account receivable at Dec’31 2020 + Credit sales on 2021 - collections on 2021 - write off the account receivable

= $475,000 + $333,000 - $304,000 - $1,870

= $502,130

Hence, the ending account receivable balance is $502,130

The same would be considered and relevant too