Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.

Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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