SISSY 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, 4,750,000 Accounts written off 125,000 Estimated uncollectible receivables per aging 165,000 What is the balance of accounts receivable before allowance for doubtful accounts on December 31? a. 1,825,000 b. 1,850,000 c. 1,950,000 d. 1,990,000
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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.
SISSY 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, 4,750,000
Accounts written off 125,000
Estimated uncollectible receivables per aging 165,000
What is the balance of accounts receivable before allowance for doubtful accounts on December 31?
a. 1,825,000
b. 1,850,000
c. 1,950,000
d. 1,990,000
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