Consider the following facts for Company A in 2013: Accounts Receivable account

Question

Consider the following facts for Company A in 2013: Accounts Receivable account balance at December 31, 2013 = $250,000. Allowance for Doubtful Accounts balance at December 31, 2013 = $12,000. During 2014, the following accounts receivable-related transactions occurred: Sales on account = $2,500,000 Sales returns and allowances = $45,000 Collections of accounts receivable = $2,250,000 Write-offs of accounts receivable deemed uncollectible = $15,000 Recovery of bad debts previously written off as uncollectible = $4,000 After all the journal entries related to these transactions have been posted to the general ledger, which of the following statements is true The balance in the Accounts Receivable account will be $350,000. The Net Realizable Accounts Receivable balance will be $439,000 The Allowance for Doubtful Accounts balance will be a $2,000 debit. None of these answers are correct The total debits recorded in the Accounts Receivable account to reflect these transactions is equal to $2,314,000.

Explanation / Answer

Consider the following facts for Company A in 2013: Accounts Receivable account

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