The Mason Company earned $113,000 of revenue on account during 2013. There was no beginning balance in the accounts receivable and allowance accounts. During 2013 Morgan collected $77,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.
The amount of uncollectible accounts expense recognized on the 2013 income statement was:
The net realizable value of Morgan's receivables at the end of 2013 was: