Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $ 125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $750 on December 31, 2021? A) $5,820. B) $31,000. C) $31,180. D) None of these answer choices are correct.
Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $ 125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $750 on December 31, 2021? A) $5,820. B) $31,000. C) $31,180. D) None of these answer choices are correct.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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Question
![Chez Fred Bakery estimates the allowance for
uncollectible accounts at 3% of the ending
balance of accounts receivable. During 2021,
Chez Fred's credit sales and collections were $
125,000 and $131,000, respectively. What was the
balance of accounts receivable on January
1, 2021, if $180 in accounts receivable were
written off during 2021 and if the allowance
account had a balance of $750 on December
31, 2021? A) $5,820. B) $31,000. C) $31,180. D)
None of these answer choices are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1a66c98-2f08-4542-b4ff-514bcfcbc410%2Fccd14097-d211-420a-8ded-74992a1e0bb4%2Fkot9i8p_processed.png&w=3840&q=75)
Transcribed Image Text:Chez Fred Bakery estimates the allowance for
uncollectible accounts at 3% of the ending
balance of accounts receivable. During 2021,
Chez Fred's credit sales and collections were $
125,000 and $131,000, respectively. What was the
balance of accounts receivable on January
1, 2021, if $180 in accounts receivable were
written off during 2021 and if the allowance
account had a balance of $750 on December
31, 2021? A) $5,820. B) $31,000. C) $31,180. D)
None of these answer choices are correct.
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