Reference no: EM132569649
At January 1, 2023, THE Company had accounts receivable of $240,000 and an allowance for doubtful accounts with an $12,000 credit balance. During 2023, THE Company had sales revenue of $525,000 and wrote-off $21,000 of accounts receivable as being uncollectible.
The aging schedule below was prepared at December 31, 2023:
Accounts Receivable % Uncollectible
not past due $125,000 2%
1-30 days past due 85,000 8%
31-60 days past due 38,000 15%
61-90 days past due 61,000 20%
over 90 days past due 28,000 35%
THE Company uses the aging method to estimate its bad debt expense.
Question 1: THE Company collected cash from its credit customers during 2023 in the amount of:
Group of answer choices
Option 1: $428,000
Option 2: $300,000
Option 3: $407,000
Option 4: $316,000
Option 5: $449,000
Option 6: $188,000
Option 7: none of the above choices are correct