An entity provided the following information for the current year:Accounts receivable – January 1P2,000,000Credit sales10,000,000Collection from customers, excluding recovery of accounts written off8,000,000Accounts written off as worthless100,000Sales return500,000Recovery of accounts written off50,000Estimated future sales returns on December 31150,000Estimated uncollectible accounts on December 31 per aging300,000What is the “amortized cost” of accounts receivable on December 31?

Recovery of accounts written off is not taken in receivable accounts. It is an income reported…

Answered: An entity provided the following…

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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An entity provided the following information for the current year:

Accounts receivable – January 1	P2,000,000
Credit sales	10,000,000
Collection from customers, excluding recovery of accounts written off	8,000,000
Accounts written off as worthless	100,000
Sales return	500,000
Recovery of accounts written off	50,000
Estimated future sales returns on December 31	150,000
Estimated uncollectible accounts on December 31 per aging	300,000

What is the “amortized cost” of accounts receivable on December 31?

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