Question

The following account balances come from the records of Ourso Company:

	Beginning Balance				Ending Balance
Accounts receivable	$	2,825			$	3,907
Allowance for doubtful accounts		127				202

During the accounting period, Ourso recorded $12,700 of sales revenue on account. The company also wrote off a $147 account receivable.

Required

1. Determine the amount of cash collected from receivables.
2. Determine the amount of uncollectible accounts expense recognized during the period.

Answer 1

The above problem can be solved in the following manner.

a. Accounts Receivable account can be determined as follows:

Beginning balance    $2825

Add: Sales Revenue $12700

Less: Write off $147

Less: Closing balance $3907

Cash collected from $11471

Accounts Receivable

b. Allowance from Doubtful debts can be arrived at as follows:

Beginning balance $127

Less: Write off $147

Less: Closing balance    $202

Uncollectible accounts       $222

expense