Kona Espresso Machine Company Makes Many of Its Sales on Account

question 116

Essay

Kona Espresso Machine Company makes many of its sales on account. For Year 2, its beginning balance in Accounts Receivable was $190,000. Sales on account for the year were $904,000, and the amount of cash collected from its accounts receivable was $829,900. During the year, uncollectible accounts of $10,100 were written off. What was the ending balance in Accounts Receivable?

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Definitions:

International Sales

Transactions involving the sale of goods or services across national borders, subject to various international commercial terms and laws.

Legal Structure

The framework of laws and regulations that establish the legal identity of an entity, its governance, and its operational guidelines.

Treaty

A formal and binding agreement between sovereign states or international entities, often in written form, pertaining to international law.

Lease

A contract by which one party conveys land, property, services, or goods to another for a specified time, usually in return for a regular payment.