Accounting questions and answers, Exercises of Accounting

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rremenasntren22 tans aif" 91h) aoe CHAPTER 18 ACCOUNTS RECEIVABLE Problem 18-1 (AICPA Adapted) Roxy Company provided the following information relating to accounts receivable for the current year: Accounts receivable on January 1 1,300,000 Credit sales 5,400,000 Collections from customers, excluding recovery 4,750,000 Accounts written off 125,000 Collection of accounts written off in prior year (customer credit was not reestablished) 25,000 Estimated uncollectible receivables per aging of receivables at December 31 165,000 What is the balance of accounts receivable, before allowance for | doubtful accounts on December 31? 1,825,000 1,850,000 1,950,000 1,990,000 SaroPp Solution 18-1 Answer a Accounts receivable - January | 1,300,000 Add: Credit sales 5,400,000 Total 6,700,000 Less: Collection from customers 4,750,000 Accounts written off 125,000 4,875,000 Accounts receivable - December 31 1,825,000 The recovery of accounts written off does not affect the balance of accounts receivable because the effect is offsetting. : 217