As of january 1, 2021, farley co. had a credit balance of $523,000 in its allowance for uncollectible accounts. based on experience, 3% of farley's credit sales have been uncollectible. during 2021, farley wrote off $636,000 of accounts receivable. credit sales for 2021 were $19,400,000. in its december 31, 2021, balance sheet, what amount should farley report as allowance for uncollectible accounts?

Balance sheet, what amount should Farley report as allowance for uncollectible accounts?

if we take the final balance of accounts receivable   $582000

If the wrotte off difference affects the final balance and we do not register additional expenses. $469000

Explanation:

Credit balance allownace  523000

Allowance for uncollective3%

Wrotte off                               636000

Credit sales                         19400000

Allowance for uncollective              3%

                                             582000

Credit balance                        523000

Wrotte off                                636000

                                             -113000

Allownace for uncollectible      469000

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

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