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

ID: 2500938 • Letter: C

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 Net Realizable Accounts Receivable balance will be $439,000

The balance in the Accounts Receivable account will be $350,000.

The total debits recorded in the Accounts Receivable account to reflect these transactions is equal to $2,314,000.

The Allowance for Doubtful Accounts balance will be a $2,000 debit.

None of these answers are correct

Accounts Receivable Ending BAlance 2013 = $250000

Allowance for Doubt ful debts 2013 = $12000

In 2014

Credit sales = $2500000, sales return and allowances = $45000

Net Sales in 2014 = 2500000-45000 = $2455000

Collection of Accounts Receivable =$2250000

Accounts Receivable for 2014 = 2455000-2250000 = $205000

Accounts Receivable for 2013 = $250000

Total Accounts Receivable = 250000+205000 = $455000

Write off = 15000 , recover = 4000

Net Accounts Receivable balance = 455000-11000 = $44400

None of the answers are correct.

Total Accounts Receivable = 455000 -

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