Ask Question
14 December, 20:36

Accounts receivable written-off as uncollectible during the year amounted to $11,500. The accounts receivable balance at the beginning of the year was $150,000. The accounts receivable balance at the end of the year was $210,000. The allowance for doubtful accounts balance at the beginning of the year was $14,000. The allowance for doubtful accounts balance at the end of the year after the recording of bad debt expense was $12,900. Credit sales during the year totaled $900,000. How much cash did XT receive from collections of accounts receivable

+2
Answers (1)
  1. 14 December, 21:02
    0
    TX received cash of $828,500 from collections of accounts receivable.

    Explanation:

    To arrive at the cash collections on accounts receivable, we need to do a movement of accounts receivable as follows:

    Opening balance $150,000

    Write-off during the year ($11,500)

    Credit sales $900,000

    Collections X

    Closing balance $210,000

    $1,038,500 - X = $210,000

    X = $828,500; therefore, the collections is $828,500.

    The allowance for doubtful accounts of $12,900 is only necessary to arrive at the net cash realizable of the accounts receivable as $828,500 - $12,900 = $815,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Accounts receivable written-off as uncollectible during the year amounted to $11,500. The accounts receivable balance at the beginning of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers