Zephyr Sewing Machine Company Makes Many of Its Sales on Account

question 137

Essay

Zephyr Sewing Machine Company makes many of its sales on account. For 2014, its beginning balance in Accounts Receivable was $91,000. Sales on account for the year were $412,000, and the amount of cash collected from its accounts receivable was $394,950. During the year, uncollectible accounts of $4,050 were written off. What was the ending balance in Accounts Receivable?

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Definitions:

Nominal Group

A technique in group decision making in which individual members meet face-to-face to pool their judgments in a systematic but independent fashion.

Round Robin

A method often used in meetings for collecting ideas or making decisions, where participants contribute one at a time in a circulation order.

PDCA Cycle

An iterative four-step management method used in business for the control and continuous improvement of processes and products, standing for Plan-Do-Check-Act.

Convergent Thinking

A problem-solving approach that focuses on finding a single, best solution to a problem by converging on a solution based on logic and facts.