On December 31 of Swift Co.’s first year, $69,000 of accounts receivable is not yet collected. Swift estimates that $3,900 of its accounts receivable is uncollectible and records the year-end adjusting entry.(1) Compute the realizable value of accounts receivable reported on Swift’s year-end balance sheet.(2) On January 1 of Swift’s second year, it writes off a customer’s account for $500. Compute the realizable value of accounts receivable on January 1 after the write-off.

Formula: Realizable value = Accounts receivable - Uncollectible accounts receivable Deduction of…

Answered: On December 31 of Swift Co.’s first…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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On December 31 of Swift Co.’s first year, $69,000 of accounts receivable is not yet collected. Swift estimates that $3,900 of its accounts receivable is uncollectible and records the year-end adjusting entry.

(1) Compute the realizable value of accounts receivable reported on Swift’s year-end balance sheet.
(2) On January 1 of Swift’s second year, it writes off a customer’s account for $500. Compute the realizable value of accounts receivable on January 1 after the write-off.

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