what is the balance of accounts receivable net on the statement of financial positio 600752

Analyzing receivables and the allowance for doubtful accounts

Vermeulen Company of Ghent, a producer of custom-made furniture, was founded in 2010. Revenues in its first year were €3.5 million, all on account. The balance in the receivables account at the end of the year was €1 million. The company estimated uncollectible receivables at 2% of sales. Based on an aging schedule and other information about customer accounts, €40 000 of receivables were written off on 31 December 2010.

One year later, on 31 December 2011, the balances in selected accounts were as follows:

On 31 December 2011, Vermeulen Company estimated that its accounts receivable balance contained €55 000 of likely uncollectibles. An adjusting entry was made to the allowance account to reflect this estimate. As in the previous year, all sales were on account.

Required

1. What was the balance in accounts receivable (gross) at the end of 2010?

2. What was the balance in the allowance for doubtful accounts account at the end of 2011?

3. What was the bad debt expense for 2011?

4. What was the amount, in euro, of the specific accounts receivable written off during 2011?

5. How much cash was collected in 2011 from customers?

6. What is the balance of accounts receivable (net) on the statement of financial position (i.e., balance sheet) dated 31 December 2011?