The following information relates to Halloran Co.'s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $ 840,000 Credit sales for 2016 3,390,000 Accounts receivable written off during 2016 67,000 Collections from customers during 2016 3,090,000 Allowance for uncollectible accounts balance, 12/31/2016 206,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2016? Multiple Choice 1. $1,073,000. 2. $1,140,000. 3. $867,000. 4. None of these answer choices are correct.

Question

Esteban Fry

Business

26 February, 15:39

The following information relates to Halloran Co.'s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $ 840,000 Credit sales for 2016 3,390,000 Accounts receivable written off during 2016 67,000 Collections from customers during 2016 3,090,000 Allowance for uncollectible accounts balance, 12/31/2016 206,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2016? Multiple Choice 1. $1,073,000. 2. $1,140,000. 3. $867,000. 4. None of these answer choices are correct.

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Answers (1)

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Felicity Whitehead · Answer 1

1. $1,073,000

Explanation:

The computation of the amount reported for accounts receivable before allowances is shown below:

Ending account receivable balance = Beginning account receivable balance + credit sales - collections from customers - written off account receivable amount

= $840,000 + $3,390,000 - $3,090,000 - $67,000

= $1,073,000