Answer:
The amount to be collected of the receivables = $1,038,800
Explanation:
we are given that:
accounts receivable = $1,060,000
allowance for doubtful accounts = $2320
uncollectible account = 2%
Next, we will convert the account uncollectible to money from percentage:
Uncollectible account = 2% of account receivable
= 2/100 of 1060000
= 0.02 × 1060000 = $ 21,200
∴ Net amount to be collected = amount receivable - amount uncollectible
Net amount to be collected = 1,060,000 - 21,200 = $1,038,800
Therefore the amount to be collected of the receivables = $1,038,800
