Chico Company began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the year and wrote off $1,400 of uncollectible accounts. Chico Company prepared the following aging schedule on December 31, Year 2:
Required:Compute the amount of cash collected from accounts receivable.Compute the uncollectible accounts expense.Determine the net realizable value of accounts receivable.

Question

Chico Company began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the year and wrote off $1,400 of uncollectible accounts. Chico Company prepared the following aging schedule on December 31, Year 2:
  Required:Compute the amount of cash collected from accounts receivable.Compute the uncollectible accounts expense.Determine the net realizable value of accounts receivable.

Quizplus · Accepted Answer

The Answer of Chico Company began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the year and wrote off $1,400 of uncollectible accounts. Chico Company prepared the following aging schedule on December 31, Year 2:
  Required:Compute the amount of cash collected from accounts receivable.Compute the uncollectible accounts expense.Determine the net realizable value of accounts receivable.

Chico Company Began Year 2 with Balances in Accounts Receivable