At January 1, 2014, Famous Thirty-Three Company reported accounts receivable of $100,000 and the allowance for doubtful accounts had a $15,000 credit balance. Famous Thirty-Three Company records bad debt expenses using the net credit sales method and estimates that 5% of its credit sales each year will prove to be uncollectible. Famous Thirty-Three Company reported the following information for 2014 and 2015: 2014 2015 Sales revenue ? $428,000 Cash collections from customers $370,000 $410,000 Accounts receivable at December 31 ? ? Allowance for doubtful accounts at December 31 $29,900 $59,600 Write-offs $9,400 ? Recoveries $4,700 ? At December 31, 2015, Famous Thirty-Three Company's net realizable value of accounts receivable totaled $67,200. Calculate Famous Thirty-Three Company's accounts receivable balance at December 31, 2014.

At January 1, 2014, Famous Thirty-Three Company reported accounts receivable of $100,000 and the allowance for doubtful accounts had a $15,000 credit balance. Famous Thirty-Three Company records bad debt expenses using the net credit sales method and estimates that 5% of its credit sales each year will prove to be uncollectible. Famous Thirty-Three Company reported the following information for 2014 and 2015: 2014 2015 Sales revenue ? $428,000 Cash collections from customers $370,000 $410,000 Accounts receivable at December 31 ? ? Allowance for doubtful accounts at December 31 $29,900 $59,600 Write-offs $9,400 ? Recoveries $4,700 ? At December 31, 2015, Famous Thirty-Three Company's net realizable value of accounts receivable totaled $67,200. Calculate Famous Thirty-Three Company's accounts receivable balance at December 31, 2014.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.1P: Allowance Method for Accounting for Bad Debts At the beginning of 2016, EZ Tech Companys Accounts...

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