Question
ABC Company reported accounts receivable of $225,000 and an allowance for doubtful accounts with a $28,000 credit balance at January 1, 2017. ABC Company records
ABC Company reported accounts receivable of $225,000 and an allowance for doubtful accounts with a $28,000 credit balance at January 1, 2017. ABC Company records bad debt expense using the net credit sales method. The following information was available for ABC Company for the years 2017 and 2018: 2017 2018 Cash collections from customers ? $275,870 Recoveries $3,600 $6,760 Net realizable value at December 31 $127,180 $154,240 Accounts receivable turnover ratio 2.40 1.80 Sales revenue $468,000 ? % of sales estimated to be uncollectible 4% ? Accounts receivable at December 31 ? $205,000 Write-offs ? ? Calculate the amount of cash collections from customers recorded by ABC Company in 2017. Do not use decimals in your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started