Answer:
$1,085,000
Explanation:
Given that,
Accounts receivable, 1/1/04 = $650,000
Credit sales for 2004 = 2,700,000
Sales returns for 2004 = 75,000
Accounts written off during 2004 = 40,000
Collections from customers during 2004 = 2,150,000
Estimated future sales returns at 12/31/04 = 50,000
Estimated uncollectible accounts at 12/31/04 = 110,000
Receivable before allowances for sales returns and uncollectible accounts:
= Accounts receivable, 1/1/04 + Credit sales for 2004 - Accounts written off during 2004 - Collections from customers during 2004 - Sales return
= $ 650,000 + $2,700,000 - $40,000 - $2,150,000 - 75,000
= $1,085,000
