At January 1, 2025, XYZ Company had an allowance for doubtful accounts with a $39,300 credit balance.
Question:
At January 1, 2025, XYZ Company had an allowance for doubtful
accounts with a $39,300 credit balance. XYZ Company reported
the following information for 2025:
Sales revenue .................................. $392,800
Cash collections from customers ................ $307,500
Write-offs of uncollectible accounts ........... ?
Recoveries of previously written-off accounts .. $ 14,600
Bad debt expense ............................... $ 31,090
In order to estimate the bad debt expense, XYZ Company prepared
the following aging schedule at December 31, 2025:
Accounts Receivable % Uncollectible
not past due $181,000 3%
1-30 days past due $ 36,000 7%
31-60 days past due $ 42,000 11%
61-90 days past due $ 21,000 24%
over 90 days past due $ 13,000 46%
total accounts receivable $293,000
Calculate XYZ Company's accounts receivable balance at
January 1, 2025.
Expert Answer:
To calculate XYZ Companys accounts receivable balance at January 1 2025 we need to consider the change in the allowance for doubtful accounts the bad ... View the full answer
