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aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 08 Oct 2010 at 15:46 \| IP Logged

in dec 31,yr 3,bal sheet fleet co reported acc receivable of 100000 before allowance for uncollectible account of 10000.credit sales during yr 4 were 611000 and collections from customer excluding recoveries totaled 591000.during yr 4, acc rec of 45000 written off and 17000 recovered.fleet estimated tht 15000 of the acc receivable at dec 31, yr 4 were uncollectible.in dec 31,yr 4, bal sheet, wht amount should fleet report as AR before allowance for uncollectible account.

ans 75000

can someone solve this?

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

Persia
Newbie
Newbie

Joined: 12 Feb 2009
Location: Bahrain
Online Status: Offline
Posts: 26

Posted: 08 Oct 2010 at 16:26 \| IP Logged

AR = 100,000

Sales = 611,000

Collect = (591,000)

Write of = (45,000)

Total = 75,000

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aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 08 Oct 2010 at 17:21 \| IP Logged

recovery is not considered?

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

Mars
Major Contributor

Joined: 11 Mar 2007
Online Status: Offline
Posts: 514

Posted: 08 Oct 2010 at 18:12 \| IP Logged

recovery will increase the receivable and then decrease it again,

1- reverse write off

Dr. Allowance

Cr. A/R

2- Collection

Dr Cash

Cr. A/R

------------------

Net effect equal zero

ccaml
Contributor

Joined: 26 Aug 2010
Online Status: Offline
Posts: 53

Posted: 08 Oct 2010 at 21:49 \| IP Logged

allowance account is not considered?

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