Chico Company Began Year 2 with Balances in Accounts Receivable

question 63

Essay

Chico Company began Year 2 with balances in accounts receivable and allowance for doubtful accounts of $44,300 and $1,675, respectively. The company reported credit sales of $490,250 during the year and wrote off $1,400 of uncollectible accounts. Chico Company prepared the following aging schedule on December 31, Year 2:
Required:Compute the amount of cash collected from accounts receivable.Compute the uncollectible accounts expense.Determine the net realizable value of accounts receivable.

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Definitions:

Crimean War

A military conflict from 1853 to 1856 in which Russia lost to an alliance of France, Britain, the Ottoman Empire, and Sardinia, highlighting the need for Russian reform.

Third Republic

The republican government of France from 1870, following the defeat of Napoleon III in the Franco-Prussian War, until 1940, when France fell to German forces in World War II.

Communards

Participants in the Paris Commune, a radical socialist and revolutionary government that briefly ruled Paris in 1871.

Lower-Middle Class

A social class positioned below the upper-middle class, typically comprised of semi-professionals, skilled craftsmen, and lower-level management.