At the beginning of Year 3 Omega Company had a $60,000 balance in its accounts receivable account and a $3,000 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events.(1)Omega earned $200,000 of revenue on account(2)Collected $210,000 cash from accounts receivable(3)Wrote-off $2,000 of accounts receivable as uncollectible Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the December 31, Year 3 balance in the accounts receivable account is

Question

Quizplus · Accepted Answer

Beginning balance in Accounts Receivable = $60,000
Revenue earned on account during the year = $200,000
Total accounts receivable = $260,000
Less: Cash collected from accounts receivable = $210,000
Ending balance in accounts receivable before adjustment = $50,000
Less: Estimated uncollectible accounts (4% of $50,000) = $2,000
Ending balance in accounts receivable after adjustment = $48,000
Therefore, the correct answer is choice C.

At the Beginning of Year 3 Omega Company Had a $60,000