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Calistoga Produce estimates bad debt expense at 0.40% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $482,000 and $1,500, respectively, at December 31, 2020. During 2021, Calistoga's credit sales and collections were $326,000 and $311,000, respectively, and $1,810 in accounts receivable were written off.
Question 1: Calistoga's accounts receivable at December 31, 2021, are:
Multiple Choice
Option 1: $465,190.
Option 2: $480,190.
Option 3: $497,000.
Option 4: $495,190.
Gross Profit Method Sliver Lumber Company handles three principal lines of merchandise with these varying rates of gross profit on cost.
During the current year, merchandise is sold for $795,000. The cost of the merchandise sold is $477,000.
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