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estimates the allowance for uncollectible accounts at 3% of the balance of accounts receivable. During 2020, Van Dijk wrote off $89,300 of accounts receivable and collected $23,770 on accounts previously written off. Bad debt expense for 2020 was $169,000. The balance in accounts receivable was $7,280,000 at 12/31/2020. What was the balance in accounts receivable at 1/1/2020?

1 Answer

5 votes

Answer:

The balance in account receivable will be "$4623333".

Step-by-step explanation:

Balance of payments allowance at 31/12/2020,

=
7280000* 3 \ percent

= $
218400

Bad dept expense = $169,000

Wrote off of account = $89,300

As we know,

Balance of payments allowance at 1/1/2020 = Balance of payments allowance at 31/12/2020 - Bad debt expense for 2020 + Wrote off

On putting the values in the above formula, we get

⇒ =
218400-169000+89300

⇒ = $
138700

Now,

Account receivable balance at 1/1/2020,

=
(13700)/(0.3)

= $
4623333

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