Ortiz Automotive ended December 2009 with Accounts Receivable of $20,000 and Allowance for Uncollectible Accounts of $5,900. During January 2010, Ortiz Automotive completed the following transactions:
Sales of $260,000, which included $160,000 in credit sales and $100,000 of cash sales.
- Cash collections on account, $54,000.
- Write-offs of uncollectible receivables, $2,500.
- Uncollectible accounts expense, estimated as 4% of credit sales.