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At January 1, 2024, Covington Inc. reported the following information on its statement of financial position: Accounts receivable Allowance for expected credit losses 1. During
At January 1, 2024, Covington Inc. reported the following information on its statement of financial position: Accounts receivable Allowance for expected credit losses 1. During 2024, the company had the following summary transactions for receivables: 2. 3. 4. 5. $500,000 6. 44,000 Sales on account, $1,680,000; cost of goods sold, $1,008,000; return rate of 5% Selling price of goods returned, $96,000; cost of goods returned to inventory, $57,600 Collections of accounts receivable, $1,500,000 Write-offs of accounts receivable deemed uncollectible, $47,000 Collection of accounts previously written off as uncollectible, $13,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000
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