Haven Company Began 2014 with a Balance in Accounts Receivable

question 127

Essay

Haven Company began 2014 with a balance in Accounts Receivable of $28,000 and a balance in the Allowance for Doubtful Accounts of $1,050. The following events occurred during 2014:
1. Recognized $107,000 of revenue on account
2. Collected $104,500 from accounts receivable
3. Wrote off as uncollectible $920 of accounts receivable
4. Recognized uncollectible accounts expense of $1,070 for the year
Required:
a. What was the net realizable value of Haven's accounts receivable at the beginning of the year?
b. What was Haven's balance in Accounts Receivable on December 31, 2014?
c. What was the balance in the Allowance for Doubtful Accounts on December 31, 2014?
d. What was the net realizable value of Haven's accounts receivable on December 31, 2014?

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Definitions:

Random Variable

A variable whose values are determined by the numerical results of a random event.

Independent

Not influenced or controlled by others; in statistics, variables that are not affected by other variables in the model.

Weekly

Pertaining to something that occurs, is done, calculated, or issued every week.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the set.