The following information relates to Jay Co.'s accounts receivable for Year 2: Accounts receivable, 1/1/Year 2...

 

Transcribed Image Text:

The following information relates to Jay Co.'s accounts receivable for Year 2: Accounts receivable, 1/1/Year 2 $ 650,000 Credit sales for Year 2 2,700,000 Sales returns for Year 2 75,000 Accounts written off during Year 2 40,000 Collections from customers during Year 2 2,150,000 Estimated future sales returns at 12/31/Year 2 50,000 Estimated uncollectible accounts at 12/31/Year 2 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, Year 2? a. $925,000 b. $1,200,000 c. $1,085,000 d. $1,125,000 The following information relates to Jay Co.'s accounts receivable for Year 2: Accounts receivable, 1/1/Year 2 $ 650,000 Credit sales for Year 2 2,700,000 Sales returns for Year 2 75,000 Accounts written off during Year 2 40,000 Collections from customers during Year 2 2,150,000 Estimated future sales returns at 12/31/Year 2 50,000 Estimated uncollectible accounts at 12/31/Year 2 110,000 What amount should Jay report for accounts receivable, before allowances for sales returns and uncollectible accounts, at December 31, Year 2? a. $925,000 b. $1,200,000 c. $1,085,000 d. $1,125,000

Answer rating: 100% (QA)

The detailed answer for the above question is provided below ... View the full answer