6) Brotherhood Company had the following information relating to its accounts receivable:Accounts receivable, 12/31/211,300,000Credit sales for 20225,400,0004,750,000125,000Collections from customers for 2022, excluding recoveryAccounts written off 9/30/22Collection of accounts written off in prior year (customer credit was notreestablished)Estimated uncollectible receivable per aging of receivable at 12/31/2225,000165,000On December 31, 2022, the amortized cost of accounts receivable isa. 1,825,000b. 1,800,000c. 1,635,000d. 1,660,000

The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Accounts receivable, 12/31/21 1,300,000 Credit sales for 2022 5,400,000 Collections from customers for 2022, excluding recovery Accounts written off 9/30/22 4,750,000 125,000 Collection of accounts written off in prior year (customer credit was not reestablished) Estimated uncollectible receivable per aging of receivable at 12/31/22 25,000 165,000 On December 31, 2022, the amortized cost of accounts receivable is a. 1,825,000 b. 1,800,000 c. 1,635,000 d. 1,660,000

Accounts receivable, 12/31/21 1,300,000 Credit sales for 2022 5,400,000 Collections from customers for 2022, excluding recovery Accounts written off 9/30/22 4,750,000 125,000 Collection of accounts written off in prior year (customer credit was not reestablished) Estimated uncollectible receivable per aging of receivable at 12/31/22 25,000 165,000 On December 31, 2022, the amortized cost of accounts receivable is a. 1,825,000 b. 1,800,000 c. 1,635,000 d. 1,660,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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