During 2019, Pine Company's credit sales were $262,000, and its cash collections from credit customers were $250,000. Also, $3,600 in doubtful accounts receivable were written off (using the allowance method) during the year. On December 31, 2019, the company's Accounts Receivable balance was $50,000.
What must have been the balance of accounts receivables on January 1, 2019?

Question

Quizplus · Accepted Answer

Ending A/R = Beg. A/R + Credit sales - Cash collections - Write-offs
$50,000 = X + $262,000 - $250,000 - $3,600
X = $41,600 = Beg. A/R

During 2019, Pine Company's Credit Sales Were $262,000, and Its