[yhe1223]

In its previous year-end balance sheet, Fleet Co. reported accounts receivable of $100,000 before allowance for

uncollectible accounts of $10,000. Credit sales during the current year were $611,000, and collections from customers,

excluding recoveries, totaled $591,000. During the year , 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 were uncollectible. In its

December 31 current year balance sheet, what amount should Fleet report as accounts receivable before allowance for

uncollectible accounts?

The answer is 75000, my answer is 92000, I used 100000+611000-591000-45000+17000, although i still don’t know why the $10000 allowance of previous year is irrelevant, i just feel that is wrong to use that.

where i got confused is why the answer is $75000, so the recovery of $17000 is also irrelevant?

Can someone help a little bit?

Thank you

Step by step
BEC 75 2013/11
FAR 76 2014/10
AUD 87 2015/1
REG 83 2015/3