The following account balances come from the records of Ourso Company:
Explanation
a.
b.
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| Beginning Balance | Ending Balance | |||||
| Accounts receivable | $ | 2,965 | $ | 3,410 | ||
| Allowance for doubtful accounts | 147 | 192 | ||||
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During the accounting period, Ourso recorded $12,300 of sales revenue on account. The company also wrote off a $120 account receivable.
|
| Required |
| a. | Determine the amount of cash collected from receivables. |
Explanation
a.
| Analyze the Accounts Receivable account: |
| Accounts Receivable | |||
| Beginning balance | $ | 2,965 | |
| Plus: Revenue on Account | 12,300 | ||
| Less: Write-off | (120 | ) | |
| Less: Ending Balance | (3,410 | ) | |
| | | | |
| Collections of accounts Rec. | $ | 11,735 | |
| | | | |
| | |||
b.
| Analyze the Allowance for Doubtful Accounts account: |
| Allowance for Doubtful Accounts | |||
| Beginning Balance | $ | 147 | |
| Less: Write-off | (120 | ) | |
| Less: Ending Balance | (192 | ) | |
| | | | |
| Uncollectible accounts expense | $ | 165 | |
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