During 2019, Neptune Company's credit sales were $786,000, and its cash collections from credit customers were $750,000. Also, $10,800 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 $150,000.
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
$150,000 = X + $786,000 - $750,000 - $10,800
X = $124,800 = Beg. A/R

During 2019, Neptune Company's Credit Sales Were $786,000, and Its