Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.
Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable.
During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of
accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance
account had a balance of $750 on December 31, 2024?
A.) $41,000
B.) $480
C.) $99,240
D.) None of these answer choices are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2fac3ce-322e-4473-82b9-7c02395e9d1c%2Fcc064abb-1495-452d-8cc3-cbd1eb6ca39a%2Ffcnmf5h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable.
During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of
accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance
account had a balance of $750 on December 31, 2024?
A.) $41,000
B.) $480
C.) $99,240
D.) None of these answer choices are correct.
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