2. The following information relates to Rem Corp\'s accounts receivable for 2015

Question

2. The following information relates to Rem Corp's accounts receivable for 2015:

Accounts receivable, 1/1/15                    $ 430,000

Credit sales for 2015                          1,800,100

Sales returns for 2015                             52,000

Accounts written off during 2015                   26,800

Collections from customers during 2015        1,450,000

Estimated future sales returns at 12/31/15         33,500

Estimated uncollectible accounts at 12/31/15       73,250

Required:

What amount should Rem report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 2015?

Explanation / Answer

Amount should Rem report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, 2015 Particulars Amount($) Opening Accounts receivable 430000 Add: Credit sales less returns 1748100 ( 1800100-52000) Less: Write off during the year -26800 Collection from Customers during the year -1450000 Accounts Receivable of Rem corp 701300 As the problem is instructed that accounts receivable, before allowances for sales returns and uncollectible accounts And Hence Allowences for Sales returns & Uncollectible Accounts is not deducted from accounts receivable

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.