Java King Espresso Machine Company Makes Many of Its Sales

question 19

Essay

Java King Espresso Machine Company makes many of its sales on account. For 2013, its beginning balance in Accounts Receivable was $95,000. Sales on account for the year were $452,000, and the amount of cash collected from its accounts receivable was $414,950. During the year, uncollectible accounts of $5,050 were written off. What was the ending balance in Accounts Receivable?

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Definitions:

Pooling of Interests

An accounting method for mergers and acquisitions where the assets and liabilities of two companies are combined at book value, not market value.

Financial Analysts

Professionals who examine financial data and trends to help businesses and individuals make investment decisions.

Rate of Return Ratios

Financial metrics that measure the profit or gain from an investment relative to its cost.

Held-to-Maturity Debt Securities

Debt securities that a company has the intent and ability to hold until they mature.