The following account balances come from the records of Ourso Company: Beginning Balance $3,099 127 Ending Balance $3,860 Accounts receivable Allowance for doubtful accounts 175 During the accounting period, Ourso recorded $11,150 of sales revenue on account. The company also wrote off a $177 account eceivable. Required a. Determine the amount of cash collected from receivables. o. Determine the amount of uncollectible accounts expense recognized during the period. a. Collections of accounts receivable b. Uncollectible accounts expense
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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.
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