Echo Company's 2014 beginning and ending accounts receivable balances were $72,500 and $41,250 respectively.During 2014,the company's sales (all on credit)amounted to $857,250.Per Echo's 2014 cash flow statement,$873,500 was collected from customers while $18,750 related to uncollectible accounts was listed among the "non-cash expenses." If Echo's beginning balance in the allowance for uncollectibles was $17,600,the ending balance in this account must be
A)$15,000.
B)$21,350.
C)$36,350.
D)The required "allowance for uncollectibles" balance cannot be determined from the data given.

Question

Quizplus · Accepted Answer

Beginning A/R + Credit sales - Cash collections - Write-offs = Ending A/R = $72,500 + $857,250 - $873,500 - X (write-offs)= $41,250.X = $15,000.Beginning Allowance for uncollectibles + Bad debt expense - write-offs = Ending Allowance for uncollectibles = $17,600 + $18,750 - $15,000 = $21,350

Echo Company's 2014 Beginning and Ending Accounts Receivable Balances Were