Sanchez Inc What Is the Balance of the Accounts Receivable Account at Year

question 19

Multiple Choice

Sanchez Inc. sells to customers only on credit. For the year ended December 31, 2017, the following information is provided:
$\begin{array}{lrr} \text {Sales revenue } &\$850,000\\ \text {Accounts receivable, 1/01/17 } &230,000\\ \text { Allowance for doubtful accounts, \( 12 / 31 / 17 \) (before adjustment for bad debts) } &600\\ \text { Collections during 2017 } &470,000\\ \text { Accounts written off as uncollectible during 2017 } &13,000\\ \text {Sales returns } &7,000\\\end{array}$

What is the balance of the Accounts Receivable account at December 31, 2017?

• A)$1,525,000
• B)$590,000
• C)$205,000
• D)$135,000

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Definitions:

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Process Cost Report

A document in cost accounting that details the production costs for units processed during a period, including materials, labor, and overhead.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units for accounting purposes.

Conversion Costs

Conversion costs are the combined costs of direct labor and factory overhead incurred to convert raw materials into finished goods.