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: see file attached

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.

\f2014 Allowance for doubtful accounts at December 31 = 29900 Writeoffs = 9400 Recoveries = 4700 Beginning Allowance for doubtful accounts = 15000 Bad Debt Expenses during the year = Allowance for doubtful accounts at December 31 (Beginning Allowance for doubtful accounts Writeoffs) Bad Debt Expenses during the year = 29900 - (150009400) Bad Debt Expenses during the year = $ 24300 Sale = Bad Debt Expenses during the year/5% Sale = 24300/5% Sale = $ 486000 Account Receivable at Dec 31 = Beginning Account Receivable + Sale + Recoveries - Writeoff - Cash Collection Account Receivable at Dec 31 = 100000 + 486000 + 47009400370000 Account Receivable at Dec 31 = $ 211300 Answer Famous Thirty Three Company's accounts receivable balance at December 31, 2014 = $ 211300 2014 Allowance for doubtful accounts at December 31 = 29900 Writeoffs = 9400 Recoveries = 4700 Beginning Allowance for doubtful accounts = 15000 Bad Debt Expenses during the year = Allowance for doubtful accounts at December 31 (Beginning Allowance for doubtful accounts + recoveries Writeoffs) Bad Debt Expenses during the year = 29900 - (15000+47009400) Bad Debt Expenses during the year = $ 19600 Sale = Bad Debt Expenses during the year/5% Sale = 19600/5% Sale = $ 392000 Account Receivable at Dec 31 = Beginning Account Receivable + Sale - Writeoff - Cash Collection Account Receivable at Dec 31 = 100000 + 392000 9400370000 Account Receivable at Dec 31 = $ 112600 Answer Famous Thirty Three Company's accounts receivable balance at December 31, 2014 = $ 112600 2014 Allowance for doubtful accounts at December 31 = 29900 Writeoffs = 9400 Recoveries = 4700 Beginning Allowance for doubtful accounts = 15000 Bad Debt Expenses during the year = Allowance for doubtful accounts at December 31 (Beginning Allowance for doubtful accounts Writeoffs) Bad Debt Expenses during the year = 29900 - (150009400) Bad Debt Expenses during the year = $ 24300 Sale = Bad Debt Expenses during the year/5% Sale = 24300/5% Sale = $ 486000 Account Receivable at Dec 31 = Beginning Account Receivable + Sale + Recoveries - Writeoff - Cash Collection Account Receivable at Dec 31 = 100000 + 486000 + 47009400370000 Account Receivable at Dec 31 = $ 211300 Answer Famous Thirty Three Company's accounts receivable balance at December 31, 2014 = $ 211300 2014 Allowance for doubtful accounts at December 31 = 29900 Writeoffs = 9400 Recoveries = 4700 Beginning Allowance for doubtful accounts = 15000 Bad Debt Expenses during the year = Allowance for doubtful accounts at December 31 (Beginning Allowance for doubtful accounts + recoveries Writeoffs) Bad Debt Expenses during the year = 29900 - (15000+47009400) Bad Debt Expenses during the year = $ 19600 Sale = Bad Debt Expenses during the year/5% Sale = 19600/5% Sale = $ 392000 Account Receivable at Dec 31 = Beginning Account Receivable + Sale - Writeoff - Cash Collection Account Receivable at Dec 31 = 100000 + 392000 9400370000 Account Receivable at Dec 31 = $ 112600 Answer Famous Thirty Three Company's accounts receivable balance at December 31, 2014 = $ 112600