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On 12-31-15, Fuji Inc.’s balance sheet reported Accounts Receivable of $100,000 before Allowance for Uncollectibles of...

On 12-31-15, Fuji Inc.’s balance sheet reported Accounts Receivable of $100,000 before Allowance for Uncollectibles of $10,000. Credit sales during 2016 were $611,000 and collections from customers were $591,000. During 2016, Accounts Receivables of $45,000 were written off and $17,000 were recovered. On 12-31-16, Fuji Inc. estimated that $15,000 of its Accounts Receivables were uncollectible.

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What amount should Fuji Inc. report as Accounts Receivables on 12/31/16?

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Account Recievables
Opening Balance 100000
Add: Credit Sales 611000
Less: Collections 591000
Less: AR write off 45000
Add: Reinstatement of AR 17000
Less: Collection of Reinstated AR 17000
Closing Balance 75000
Allowance for Recievables Write off of AR:
Opening Balance 10000 PL Account Dr. 35000
Less: AR Write off 10000 Allowance for Reciavable Dr. 10000
Net Balance during the Year 0 To Account Recievable 45000
New Estimate of Uncollection 15000
Closing Balance 15000 Reinstatement of AR:
Account Recievable Dr. 17000
To PL Account 17000
AR To be Reported at Year End:
Account Recievalable, Gross 75000 Collection of Reinstated AR:
Allowance for Uncollectible 15000 Cash Account Dr. 17000
Account Recievalable, Net 60000 To Account Recievable 17000

ekkarill92 answered 1 year ago
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