Answer:
$154,000
Explanation:
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 account
Ending balance of accounts receivable = Beginning balance + credit sales - customers’ accounts collected - write off amount
Accounts receivable, beginning. $150,000
Add: Credit sales 600,000
Less: Collections on receivables (590,000)
Less: written of account (4000)
= $156,000
Balance at the end= Beginning balance - write off amount
= $6,000 - $4,000
= $2,000
net amount of receivables is calculated as
= Ending balance of accounts receivable - ending balance of allowance for Doubtful Accounts
= $156,000 - $2,000
= $154,000
