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At January 1, 2021, Vermillion Imports Inc. reported the following on its statement of financial position: Accounts receivable $2,143,000 Allowance for doubtful accounts 144,800 During
At January 1, 2021, Vermillion Imports Inc. reported the following on its statement of financial position:
Accounts receivable | $2,143,000 | ||
Allowance for doubtful accounts | 144,800 |
During 2021, the company had the following summary transactions for receivables:
1. | Sales on account, $6,588,000; Cost of goods sold, $3,615,000; return rate of 2% | ||
2. | Selling price of goods returned, $106,000; cost of goods returned to inventory, $56,200 | ||
3. | Collection of accounts receivable, $6,588,000 | ||
4. | Write offs of accounts receivable deemed uncollectible, $191,000 | ||
5. | Collection of accounts previously written off as uncollectible, $89,100 | ||
6. | After considering all of the above transactions, total estimated uncollectible accounts, $127,300 |
Determine the carrying amount of the accounts receivable as at January 1. With Caculation.
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