The Piante Company has an accounts receivable balance of $256,000 at the beginning of the year.Credit sales for the year are projected at $923,000.Management estimates that 98% of the beginning accounts receivable plus 82% of the credit sales will be collected during the period.The projected balance of accounts receivable at year-end equal to:

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The projected collections are 98% of $256,000 (beginning balance) plus 82% of $923,000 (credit sales), which equals $250,880 + $756,860 = $1,007,740. The total credit sales are $923,000, so the ending accounts receivable balance is $923,000 - $756,860 = $166,140.

The Piante Company Has an Accounts Receivable Balance of $256,000