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In the First Year of Operations, 2014, Ringsted Repair Service

question 146

Essay

In the first year of operations, 2014, Ringsted Repair Service recognized $265,000 of service revenue on account. The ending accounts receivable balance was $75,000. The company estimates that 3% of sales on account will not be collected. Assume there were no other transactions affecting accounts receivable.
Required:
a) What amount of cash was collected in 2014?
b) What amount of uncollectible accounts expense was recognized in 2014?


Definitions:

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