Jennifer had net sales (all on account) in 2020 of $860000. At December 31, 2020, before adjusting entries, the balances in selected accounts were: accounts receivable $1060000 debit, and allowance for doubtful accounts $2320 debit. Jennifer estimates that 2% of its accounts receivable will prove to be uncollectible. What is the net amount expected to be collected of the receivables reported on the financial statements at December 31, 2020

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