Question

Question 6 Not yet answered Marked out of 2.00 P Flag question John Den Bear Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $600,000 and customers' accounts collected were $590,000. Also, $4,000 in worthless accounts were written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts?

Answer 1

Beginning accounts receivables	150000
(+) Credit sales	600000
(-) Collected from customers	590000
(-) Accounts written off	4000
Ending accounts receivables	156000
Beginning Credit balance in Allowance for doubtful accounts	6000
(-) Accounts receivables	4000
Ending credit balance in allowance for doubtful accounts before provisions	2000
Ending accounts receivables	156000
(-) Ending credit balance in allowance for doubtful accounts before provisions	2000
Net amount of receivables included in current assets before provisions for doubtful accounts	154000