Question

Calistoga Produce estimates bad debt expense at 0.20% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,620, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $327,000 and $308,000, respectively, and $1,740 in accounts receivable were written off. Calistoga's accounts receivable at December 31, 2021, are:

Answer 1

Answer:

$488,260

Explanation:

Calculation for Calistoga's accounts receivable at December 31, 2021

Accounts Receivable 1/1/2021 $471,000

Credit sales$327,000

Less Collections (308,000)

Less Write-offs (1,740)

Accounts Receivable 12/31/2021 $488,260

Therefore Calistoga's accounts receivable at December 31, 2021, are:$488,260