n early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for doubtful accounts of BD 4,500 (credit). During the period, the business had net credit sales of BD 400,000 and collections of BD 350,000. It wrote as uncollectible accounts receivable of BD 3,800 However, a BD 1,500 account previously written off as uncollectible was recovered be the end of the current period. Uncollectible accounts are estimated to total BD 12,500 at the end of the period. e. Determine the ending balances in account receivable doubtful accounts and ending balance for? (f. What is the net realizable value of the receivables at the end of period?
n early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for doubtful accounts of BD 4,500 (credit). During the period, the business had net credit sales of BD 400,000 and collections of BD 350,000. It wrote as uncollectible accounts receivable of BD 3,800 However, a BD 1,500 account previously written off as uncollectible was recovered be the end of the current period. Uncollectible accounts are estimated to total BD 12,500 at the end of the period. e. Determine the ending balances in account receivable doubtful accounts and ending balance for? (f. What is the net realizable value of the receivables at the end of period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
In early 2021, Amina Corp. had balances in account receivables of BD 125,000 and allowance for
doubtful accounts of BD 4,500 (credit). During the period, the business had net credit sales of BD
400,000 and collections of BD 350,000. It wrote as uncollectible accounts receivable of BD 3,800
However, a BD 1,500 account previously written off as uncollectible was recovered be the end of the
current period. Uncollectible accounts are estimated to total BD 12,500 at the end of the period.
e. Determine the ending balances in account receivable
doubtful accounts and ending balance for?
(f. What is the net realizable value of the receivables at the end of period?
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