In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000.
-What accounts receivable balance would Dinty report in its first year-end balance sheet?

Question

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000. 
-What accounts receivable balance would Dinty report in its first year-end balance sheet?

Quizplus · Accepted Answer

Credit sales - Cash collections - Write-offs = Change in Accounts receivable
So, $2,200,000 - 1,950,000 - 32,000 = $218,000.

In the Balance Sheet at the End of Its First