FT Inc. estimated its allowance for uncollectible accounts at 2% of the ending balance of accounts receivable. During 2017, the company's credit sales amounted to $259,000 and cash collected amounted to $242,000. Determine the balance of accounts receivables on January 1, 2017, if accounts receivable written off during the year were $1050 and if the allowance account had a balance of $1,550 on December 31, 2017? a. $17,000 b. $77,500 c. $16,500 d. $15,450
FT Inc. estimated its allowance for uncollectible accounts at 2% of the ending balance of accounts receivable. During 2017, the company's credit sales amounted to $259,000 and cash collected amounted to $242,000. Determine the balance of accounts receivables on January 1, 2017, if accounts receivable written off during the year were $1050 and if the allowance account had a balance of $1,550 on December 31, 2017? a. $17,000 b. $77,500 c. $16,500 d. $15,450
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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![FT Inc. estimated its allowance for uncollectible accounts at 2% of the ending balance of
accounts receivable. During 2017, the company's credit sales amounted to $259,000 and cash
collected amounted to $242,000.
Determine the balance of accounts receivables on January 1, 2017, if accounts receivable
written off during the year were $1050 and if the allowance account had a balance of $1,550
on December 31, 2017?
а. $17,000
b. $77,500
c. $16,500
d. $15,450
с.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f06d727-28df-4ca3-84ba-9f4c44955da2%2Fd68149a6-1959-4f73-a142-15a7e22eddbb%2Fidj30tc_processed.png&w=3840&q=75)
Transcribed Image Text:FT Inc. estimated its allowance for uncollectible accounts at 2% of the ending balance of
accounts receivable. During 2017, the company's credit sales amounted to $259,000 and cash
collected amounted to $242,000.
Determine the balance of accounts receivables on January 1, 2017, if accounts receivable
written off during the year were $1050 and if the allowance account had a balance of $1,550
on December 31, 2017?
а. $17,000
b. $77,500
c. $16,500
d. $15,450
с.
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