As of January 1, 2021, Farley Co. had a credit balance of $522,000 in its allowance for uncollectible accounts. Based on experience, 3% of Farley's credit sales have been uncollectible. During 2021, Farley wrote off $634,000 of accounts receivable. Credit sales for 2021 were $18,900,000. In its December 31, 2021, balance sheet, what amount should Farley report as allowance for uncollectible accounts

($455,000 )

Explanation:

When sales are made on account, the entries required are;

Debit Sales/Revenue

Credit Accounts Receivables

The company may then estimate that part of the receivables may be uncollectible. For this, entries required are;

Debit Bad debts expense

Credit Allowance for doubtful debt (B/s)

When the amounts provided for becomes uncollectible, the entries then  become

Debit Allowances for doubtful debts

Credit Accounts receivables

to write off the amount from account receivables.

Hence where 3% of Farley's credit sales have been uncollectible, this amounts to

= 3% of $18,900,000

= $567,000

Considering the above entries

Amount to be reported as allowance for uncollectible  at 31 December , 2021

= ($522,000) + $634,000 + ($567,000)

= ($455,000 )

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi