Vladulac Corporation Began 2017 with Accounts Receivable of $180,000 and an Allowance

question 112

Essay

Vladulac Corporation began 2017 with accounts receivable of $180,000 and an allowance for uncollectible accounts of $13,000 (credit balance).Bad debt expense for the year was $25,000 and the ending balance in the allowance for uncollectible accounts account was $16,000.The accounts receivable turnover ratio for 2017 was 10.0.NOTE: This ratio was calculated using the average of gross accounts receivable in the denominator (that is,[$180,000 + year-end accounts receivable] divided by 2).
The following additional information is also available:
Required:
a.What was the amount of accounts receivable written off during the year?
b.What was the amount of cash collected from customers during the year? Assume that all sales are made on a credit basis and that there were no collections of previously written off receivables or sales returns.

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Definitions:

Metric System

A decimal system of measurement based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.

Fluid Dram

A unit of volume in the apothecaries' system, equivalent to 1/8 of a fluid ounce.

Metric Equivalent

Metric equivalent is the corresponding value of a measurement expressed within the metric system, used for converting units like inches to centimeters.

Microgram

A unit of mass equal to one millionth of a gram, commonly used in medicine and science to measure small weights and doses.