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ICP 5-1 Eden Ltd. began operations on January 1, 20x3, and has a December 31 fiscal year end. Eden Ltd. estimates that, on average, 5%
ICP 5-1 Eden Ltd. began operations on January 1, 20x3, and has a December 31 fiscal year end. Eden Ltd. estimates that, on average, 5% of credit sales will never be collected. The following information is available for 20x3 and 20x4: 2014 20x3 Cash sales Credit sales Total sales $360,000 940,000 $1.300.000 $ 260,000 840,000 $1.100.000 Payments received on account of credit sales $700,000 $500,000 Credit accounts written off $45,000 $20,000 Recoveries of accounts previously written off (not included in the $700,000 payments received on account of credit sales) $5,000 Required - On its December 31, 20x4, balance sheet, what amount would Eden Ltd. report as accounts receivable, net of allowance for uncollectible accounts
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