In its December 31, year 1 balance sheet, Fleet Co. reported accounts receivable of $100,000 before allowance for uncollectible accounts of $10,000. Credit sales during year 2 were $611,000, and collections from customers, excluding recoveries, totaled $591,000.

 In its December 31, year 1 balance sheet, Fleet Co. reported accounts receivable of $100,000 before allowance for uncollectible accounts of $10,000. Credit sales during year 2 were $611,000, and collections from customers, excluding recoveries, totaled $591,000. During year 2, accounts receivable of $45,000 were written off and $17,000 were recovered. Fleet estimated that $15,000 of the accounts receivable at December 31, year 2, were uncollectible. In its December 31, year 2 balance sheet, what amount should Fleet report as accounts receivable before allowance for uncollectible accounts?
$58,000
$67,000
$75,000 correct
$82,000
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The ending accounts receivable balance for 12/31/Y1 was given.  This becomes the beginning balance for year 2.  The year 2 credit sales would be recorded by debiting accounts receivable and crediting sales.  The collections from customers would be recorded by debiting cash and crediting accounts receivable. The write-off of accounts receivable would be recorded by debiting the allowance account and crediting accounts receivable. The $17,000 of recoveries do not impact the ending balance of accounts receivable, as they are put back into accounts receivable and then taken out as they were paid in year 2.  The ending balance can then be solved for by adding up the debit column of accounts receivable and then subtracting the credit column.

$100,000 + $611,000 − $591,000 − $45,000 = $75,000