Question

OPA Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2016, OPA's credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2016, if $180 in accounts receivable were written off during 2016 and if the allowance account had a balance of $750 on December 31, 2016

Answer 1

$31,180

Step-by-step explanation:

A/R-Collected $131,000

Credit Sales ($125,000)

A/R Written off $ 180

Closing balance of A/R ($750/3%) $25,000

Opening balance of A/R $31,180