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6 April, 03:10

As of January 1, 2021, Farley Co. had a credit balance of $523,000 in its allowance for uncollectible accounts. Based on experience, 3% of Farley's credit sales have been uncollectible. During 2021, Farley wrote off $636,000 of accounts receivable. Credit sales for 2021 were $19,400,000. In its December 31, 2021, balance sheet, what amount should Farley report as allowance for uncollectible accounts?

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  1. 6 April, 04:29
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    Balance sheet, what amount should Farley report as allowance for uncollectible accounts?

    if we take the final balance of accounts receivable $582000

    If the wrotte off difference affects the final balance and we do not register additional expenses. $469000

    Explanation:

    Credit balance allownace 523000

    Allowance for uncollective 3%

    Wrotte off 636000

    Credit sales 19400000

    Allowance for uncollective 3%

    582000

    Credit balance 523000

    Wrotte off 636000

    -113000

    Allownace for uncollectible 469000
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