John Den Bear Company had a $450,000 beginning balance in Accounts Receivable and a $18,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $1,800,000 and customers' accounts collected were $1,770,000. Also, $12,000 in worthless accounts were written off.
What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts?

Question

Quizplus · Accepted Answer

Year-end Allowance for Doubtful Accounts = $18,000 - $12,000 = $6,000
Year-end Accounts receivable = $450,000 + $1,800,000 - $1,770,000 - $12,000= $468,000
Net Accounts Receivable = $468,000 - $6,000 = $462,000

John Den Bear Company Had a $450,000 Beginning Balance in Accounts