On December 31 of Swift Company's first year, $57,000 of accounts receivable was not yet collected. Swift estimated that $2,700 of its accounts receivable was uncollectible and recorded the year-end adjusting entry. 1. Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. 2. On January 1 of Swift's second year, it writes off a customer's account for $400. Compute the realizable value of accounts receivable on January 1 after the write-off. Realizable value of accounts receivable Before Write-Off After Write-Off

On December 31 of Swift Company's first year, $57,000 of accounts receivable was not yet collected. Swift estimated that $2,700 of its accounts receivable was uncollectible and recorded the year-end adjusting entry. 1. Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. 2. On January 1 of Swift's second year, it writes off a customer's account for $400. Compute the realizable value of accounts receivable on January 1 after the write-off. Realizable value of accounts receivable Before Write-Off After Write-Off

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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