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4 September, 05:59

The following information relates to Halloran Co.'s accounts receivable for 2016: Accounts receivable balance, 1/1/2016 $ 840,000 Credit sales for 2016 3,390,000 Accounts receivable written off during 2016 67,000 Collections from customers during 2016 3,090,000 Allowance for uncollectible accounts balance, 12/31/2016 206,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2016? Multiple Choice 1. $1,073,000. 2. $1,140,000. 3. $867,000. 4. None of these answer choices are correct.

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  1. 4 September, 07:05
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    1. $1,073,000

    Explanation:

    The computation of the amount reported for accounts receivable before allowances is shown below:

    Ending account receivable balance = Beginning account receivable balance + credit sales - collections from customers - written off account receivable amount

    = $840,000 + $3,390,000 - $3,090,000 - $67,000

    = $1,073,000
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