Accounts receivable transactions are provided below for J Blossom Co. Dec. 31, 2023 The company estimated that 4% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $680,000 and $2.900 (debit), respectively. Mar. 5, 2024 The company determined that R. Mirza's $3.100 account and D. Wight's $6.300 account were uncollectible. The company's accounts receivable were $718,700 before the accounts were written off. June 6, 2024 Wight paid the amount that had been written off on March 5. The company's accounts receivable were $670,600 prior to recording the cash receipt for Wight. Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2024. Carrying amount before recovery $ Carrying amount after recovery $
Accounts receivable transactions are provided below for J Blossom Co. Dec. 31, 2023 The company estimated that 4% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $680,000 and $2.900 (debit), respectively. Mar. 5, 2024 The company determined that R. Mirza's $3.100 account and D. Wight's $6.300 account were uncollectible. The company's accounts receivable were $718,700 before the accounts were written off. June 6, 2024 Wight paid the amount that had been written off on March 5. The company's accounts receivable were $670,600 prior to recording the cash receipt for Wight. Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2024. Carrying amount before recovery $ Carrying amount after recovery $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:Accounts receivable transactions are provided below for J Blossom Co.
Dec. 31, 2023
The company estimated that 4% of its accounts receivable would become uncollectible. The balances in the
Accounts Receivable account and Allowance for Doubtful Accounts were $680,000 and $2,900 (debit),
respectively.
Mar. 5, 2024
June 6, 2024
The company determined that R. Mirza's $3.100 account and D. Wight's $6.300 account were uncollectible. The
company's accounts receivable were $718,700 before the accounts were written off.
Wight paid the amount that had been written off on March 5. The company's accounts receivable were $670,600
prior to recording the cash receipt for Wight.
Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6,
2024.
Carrying amount before recovery
$
Carrying amount after recovery
$
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