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RECOMMENDED!!ACCT 101-During the first year of operation, 2014

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During the first year of operation, 2014, Ferrell’s Appliance recognized $261,000 of service revenue on account. At the end of 2014, the accounts receivable balance was $46,300. Even though this is his first year in business, the owner believes he will collect all but about 4 percent of the ending balance. What amount of cash was collected by Ferrell’s during 2014?Assuming the use of an allowance system to account for uncollectible accounts, what amount should Ferrell record as uncollectible accounts expense in 2014?What is the net realizable value of receivables at the end of 2014?

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