ABC company only sells on account for the year 2022. The company began the year with $6,000 in Accounts Receivable and zero in the allowance for doubtful accounts. During the year, sales on account were $27,500, and the cost of goods sold were $8,750. Cash collected on account was $18,000, sales returns and allowances were $800 and sales discount $500.00. In addition, a customer account balance in the amount of $1,000 was written off as uncollectable but $200 were reinstated. 1. What is ABC Company accounts receivable balance and the allowance for doubtful accounts unadjusted at the December 31, 2022? $ and $ (Hint: use a T account to solve this problem)
ABC company only sells on account for the year 2022. The company began the year with $6,000 in Accounts Receivable and zero in the allowance for doubtful accounts. During the year, sales on account were $27,500, and the cost of goods sold were $8,750. Cash collected on account was $18,000, sales returns and allowances were $800 and sales discount $500.00. In addition, a customer account balance in the amount of $1,000 was written off as uncollectable but $200 were reinstated. 1. What is ABC Company accounts receivable balance and the allowance for doubtful accounts unadjusted at the December 31, 2022? $ and $ (Hint: use a T account to solve this problem)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC company only sells on account for the year 2022. The company began the year with $6,000
in Accounts Receivable and zero in the allowance for doubtful accounts. During the year, sales
on account were $27,500, and the cost of goods sold were $8,750. Cash collected on account
was $18,000, sales returns and allowances were $800 and sales discount $500.00. In addition, a
customer account balance in the amount of $1,000 was written off as uncollectable but $200
were reinstated.
1. What is ABC Company accounts receivable balance and the allowance for doubtful accounts
unadjusted at the December 31, 2022? $
and $
(Hint: use a T account
to solve this problem)
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