During year 1, ramona department store had total sales of $3,000,000, of which
80% were on credit. the beginning balance in accounts receivable (on january 1 of
year 1) was $165,000. the beginning balance in the allowance for bad debts (on
january 1 of year 1) was $20,000. the amount of accounts written off as
uncollectible during the year was $27,000.
the following aging of accounts receivable is for ramona company at the end of year
1.
aging of accounts receivable
december 31 of year 1
less than 31 days to 61 days to over
overall 30 days 60 days 90 days 90 days
total $492,000 $366,000 $72,000 $24,000 $30,000
ramona company has developed the following bad debt information from its own past
experience.
percent
ultimately
age of account uncollectible
less than 30 days 2
31 to 60 days 12
61 to 90 days 35
over 90 days 90
12. how much cash was collected from credit customers during the year?
a. $2,073,000
b. $2,721,000
c. $2,400,000
d. $2,370,000
e. $2,424,000
f. $2,046,000