Current Attempt in Progress At December 31, 2021, Suisse Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts During 2022, the company had the following transactions related to receivables. 1. 2. 3. 4. $600,000 37,000 Sales on account Sales returns and allowances Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible $2,500,000 50,000 2,200,000 41,000
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.
 alt="Current Attempt in Progress
At December 31, 2021, Suisse Imports reported this information on its balance sheet.
Accounts receivable
Less: Allowance for doubtful accounts
During 2022, the company had the following transactions related to receivables.
1.
2.
3.
4.
(d)
Sales on account
Sales returns and allowances
Collections of accounts receivable
Write-offs of accounts receivable deemed uncollectible
V:
$600,000
37,000
eTextbook and Media
List of Accounts
Save for Later
$2,500,000
Indicate how accounts receivable and the allowance for doubtful accounts will be reported on the December 31, 2022, balance
sheet.
50,000
2,200,000
41,000
SUISSE IMPORTS
Balance Sheet
Assets
+A
$
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