At January 1, 2014, Famous Thirty Three Company reported accounts receivable of

ID: 2427423 • Letter: A

Question

 At January 1, 2014, Famous Thirty Three Company reported accounts receivable of $100,000 and the allowance for doubtful accounts had a $15,000 credit balance. Famous Thirty Three Company records bad debt expense using the net credit sales method and estimates that 5% of its credit sales each year will prove to be uncollectible. Famous Thirty Three Company reported the following information for 2014 and 2015:

                                                         2014                  2015 Sales revenue                                             ?                $428,000 Cash collections from customers                       $370,000             $410,000 Accounts receivable at December 31                        ?                    ?  Allowance for doubtful accounts at December 31         $29,900              $59,600 Write-offs                                              $9,400                 ? Recoveries                                              $4,700                 ?  At December 31, 2015, Famous Thirty Three Company's net realizable value of accounts receivable totaled $67,200.

 Calculate Famous Thirty Three Company's accounts receivable balance at December 31, 2014. Do not use decimals in your answer.

Explanation / Answer

Recoveris during 2015 =ending balance in allowance -Beginning balance -Write off

= 59600 - 29900- (428000*.05)

= $ 8300

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At January 1, 2014, Famous Thirty Three Company reported accounts receivable of

At January 1, 2014, ramous Thirty Three company reported accounts receivable of

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At January 1, 2014, Famous Thirty Three Company reported accounts receivable of

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