Question

The following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 858,000 Credit sales for 2021 3,450,000 Accounts receivable written off during 2021 54,000 Collections from customers during 2021 3,030,000 Allowance for uncollectible accounts balance, 12/31/2021 215,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021

Answer 1

Answer:

$1,224,000

Explanation:

Given that,

Accounts receivable balance, 1/1/2021 = $ 858,000

Credit sales for 2021 = $3,450,000

Accounts receivable written off during 2021 = $54,000

Collections from customers during 2021 = $3,030,000

Allowance for uncollectible accounts balance, 12/31/2021 = 215,000

Halloran report for accounts receivable, before allowances, at December 31, 2021:

= Beginning accounts receivables + Credit sales for 2021 - Accounts receivable written off during 2021 - Collections from customers during 2021

= $858,000 + $3,450,000 - $54,000 - $3,030,000

= $1,224,000