Waste Disposal, Inc. provided the following information concerning its accounting records: Sales revenue (all on account) $362,500 Accounts receivable, gross January 1 23,500 Allowance for uncollectible accounts, January 1 1,350 Collections from customers during the year 358,500 Accounts written off as uncollectible during the year 1,100 How much is the balance of the Accounts Receivable, gross account at December 31?
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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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Sales revenue (all on account)
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$362,500
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23,500
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Allowance for uncollectible accounts, January 1
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1,350
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Collections from customers during the year
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358,500
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Accounts written off as uncollectible during the year
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1,100
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How much is the balance of the Accounts Receivable, gross account at December 31?
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