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Current Assets - A/R - Jurdi Company
The following are transactions affecting accounts receivable for the Jurdi Company during theyear ended December 31, 20x5:Total Sales (all credit) $620,000 Cash collected on account (note that one half of customers took advantage of the trade discount 2/10, net 30) 589,050 Accounts receivable written off 5,450 Credit issued to customers for sales returns and allowances 14,500 Recoveries of accounts receivable written off as uncollectible in prior periods (not include in cash collected above) 3,400 The following balances were taken from the Balance Sheet dated December 31, 20x4:Accounts receivable $96,400Allowance for doubtful accounts 9,700 The Jurdi Company estimated bad debts to be equal to 0.5% of credit sales net of sales returnsand allowances.
Required:
Calculate the Accounts Receivable and Allowance for Doubtful Accounts balance as atDecember 31, 20x5
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