Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions