29. 4.00 points In the balance sheet at the end of its first year of operations,

Question

29. 4.00 points In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,500, During the year, Dinty wrote off $31.400 of accounts recelvable it had attempted to collect and falled. Credit sales for the year were $2.390.000, and cash collections from credmt customers totaled $1,770,000. What accounts recelvable balance would Dinty report in lts first year-end balance sheet? o $588,600 O None of the obove is correct O $568.900 O $537500

Explanation / Answer

29.

Accounts Receivable = Credit sales - Cash collections from credit sales

= 2,390,000 - 1,770,000

= 620,000

Journal entry for write off

Accounts Receivable in the first year end balance sheet = 620,000 - 31,400 = 588,600.

28.

Accounts Receivable for the year 2016 = Credit sales in 2016 - Cash collections from credit sales in 2016

= 328,000 - 309,000

= 19,000

Accounts Receivable at December 31, 2016 = Accounts Receivable at December 31, 2015 + Accounts Receivable for the year 2016

= 489,000 + 19,000

= 508,000.

Allowance for uncollectible 31,400 Accounts Receivable 31,400

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