Question

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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Answer 1

	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