Chez Fred Bakery estimates the allowance for uncollectible accounts at 1% of the ending balance...
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Chez Fred Bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $150 in accounts receivable were written off during 2021 and if the allowance account had a balance of $990 on December 31, 2021?
Multiple Choice
$123,150.
$390.
$41,000.
None of these answer choices are correct.
Chez Fred Bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $150 in accounts receivable were written off during 2021 and if the allowance account had a balance of $990 on December 31, 2021? Multiple Choice $123,150. $390. $41,000. None of these answer choices are correct
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