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Problem 1: During 2018, Weasley Inc.'s credit sales and collections were $260,000 and $265,000, respectively. The company wrote off $650 related to accounts that were deemed not collectible during the year. The company also had a recovery of $100 during the year. On December 31, 2018, Weasley estimates uncollectible accounts will be 5% of the ending balance of accounts receivable. What was the balance of accounts receivable on January 1, 2018, if, after the period end bad debt expense adjustment, the allowance for uncollectible accounts had a credit balance of $1,600 on December 31, 2018?
Financial Statement Analysis and Preparation
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