At January 1, 2025, XYZ Company had an allowance for doubtful accounts with a $39,300 credit balance. XYZ Company reported the following information for 2025: Sales revenue .................................. $392,800 Cash collections from customers ................ $307,500 Write-offs of uncollectible accounts ........... ? Recoveries of previously written-off accounts .. $ 14,600 Bad debt expense ............................... $ 31,090 In order to estimate the bad debt expense, XYZ Company prepared the following aging schedule at December 31, 2025: Accounts Receivable % Uncollectible not past due $181,000 3% 1-30 days past due $ 36,000 7% 31-60 days past due $ 42,000 11% 61-90 days past due $ 21,000 24% over 90 days past due $ 13,000 46% total accounts receivable $293,000 Calculate XYZ Company's accounts receivable balance at January 1, 2025.
Bad Debts
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.
At January 1, 2025, XYZ Company had an allowance for doubtful
accounts with a $39,300 credit balance. XYZ Company reported
the following information for 2025:
Sales revenue .................................. $392,800
Cash collections from customers ................ $307,500
Write-offs of uncollectible accounts ........... ?
Recoveries of previously written-off accounts .. $ 14,600
In order to estimate the bad debt expense, XYZ Company prepared
the following aging schedule at December 31, 2025:
not past due $181,000 3%
1-30 days past due $ 36,000 7%
31-60 days past due $ 42,000 11%
61-90 days past due $ 21,000 24%
over 90 days past due $ 13,000 46%
total accounts receivable $293,000
Calculate XYZ Company's accounts receivable balance at
January 1, 2025.
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