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11 October, 04:16

Accounts receivable, 1/1/X2 $ 650,000 Credit sales for 20X2 2,700,000 Sales returns for 20X2 75,000 Accounts written of during 20X2 40,000 Collections from customers during 20X2 2,150,000 Estimated future sales returns at 12/31/X2 50,000 Estimated uncollectible accounts at 12/31/X2 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 20X2?

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  1. 11 October, 04:19
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    gross account receivable: 1,085,000

    net account receivable: 925,000

    Explanation:

    Before adjustment, will be the gross account receivables, after subtracting the allowance account we got the net account receivable.

    Beginning Account Receivable: 650,000

    Credit sales for the period: 2,700,000

    Sales Return (75,000)

    Collection from the customers (2,150,000)

    write-off receivables: (40,000)

    Account receivables (gross) 1,085,000

    Allowance for uncollectible

    and returns: (160,000)

    Account Receivable (net) 925,000
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