At the beginning of the current period, Sunland company had balances in accounts receivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). During the period, it had credit sales of $875,700 and collections of $796,820. It was written off as uncollectible accounts receivable of $7,410. However, a $2,808 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,830 at the end of the period (Omit the cost of goods sold entries). a) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. b) What is the net realizable value of the receivables at the end of the period?
At the beginning of the current period, Sunland company had balances in accounts receivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). During the period, it had credit sales of $875,700 and collections of $796,820. It was written off as uncollectible accounts receivable of $7,410. However, a $2,808 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,830 at the end of the period (Omit the cost of goods sold entries). a) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. b) What is the net realizable value of the receivables at the end of the period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At the beginning of the current period, Sunland company had balances in accounts
receivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). During
the period, it had credit sales of $875,700 and collections of $796,820. It was written off as
uncollectible accounts receivable of $7,410. However, a $2,808 account previously written
off as uncollectible was recovered before the end of the current period. Uncollectible
accounts are estimated to total $25,830 at the end of the period (Omit the cost of goods sold
entries).
a) Determine the ending balances in Accounts Receivable and Allowance for Doubtful
Accounts.
b) What is the net realizable value of the receivables at the end of the period?
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