Question 7 On January 1, 2025, ABC Company had accounts receivable of $86,000 and an allowance for doubtful accounts with a credit balance of $33,000. During 2025, ABC collected $437,000 cash from its credit customers and wrote-off as uncollectible. $29,000 of accounts receivable. ABC uses the net credit sales method to estimate bad debt expense and estimated its bad debt expense for 2025 as 7% of net credit sales. Assume all of ABC Company's sales are made on account. At December 31, 2025, the net realizable value of ABC Company's accounts receivable totaled $125,640. Calculate the amount of sales reveriue reported by ABC Company in 2025.
Question 7 On January 1, 2025, ABC Company had accounts receivable of $86,000 and an allowance for doubtful accounts with a credit balance of $33,000. During 2025, ABC collected $437,000 cash from its credit customers and wrote-off as uncollectible. $29,000 of accounts receivable. ABC uses the net credit sales method to estimate bad debt expense and estimated its bad debt expense for 2025 as 7% of net credit sales. Assume all of ABC Company's sales are made on account. At December 31, 2025, the net realizable value of ABC Company's accounts receivable totaled $125,640. Calculate the amount of sales reveriue reported by ABC Company in 2025.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.1AP: Allowance Method for Accounting for Bad Debts At the beginning of 2016, Miyazaki Companys Accounts...
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Question 7
On January 1, 2025, ABC Company had accounts receivable of
$86,000 and an allowance for doubtful accounts with a credit
balance of $33,000. During 2025, ABC collected $437,000 cash
from its credit customers and wrote-off as uncollectible
$29,000 of accounts receivable. ABC uses the net credit sales
method to estimate bad debt expense and estimated its bad debt
expense for 2025 as 7% of net credit sales. Assume all of ABC
Company's sales are made on account.
At December 31, 2025, the net realizable value of ABC Company's
accounts receivable totaled $125,640.
Calculate the amount of sales revenue reported by ABC Company
in 2025.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F531d22d6-41e3-4ab6-9b43-fd8dca83c239%2F6568c978-24cf-489e-aa60-d80d9afb962d%2Fpef8buf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:D
Question 7
On January 1, 2025, ABC Company had accounts receivable of
$86,000 and an allowance for doubtful accounts with a credit
balance of $33,000. During 2025, ABC collected $437,000 cash
from its credit customers and wrote-off as uncollectible
$29,000 of accounts receivable. ABC uses the net credit sales
method to estimate bad debt expense and estimated its bad debt
expense for 2025 as 7% of net credit sales. Assume all of ABC
Company's sales are made on account.
At December 31, 2025, the net realizable value of ABC Company's
accounts receivable totaled $125,640.
Calculate the amount of sales revenue reported by ABC Company
in 2025.
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