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