20. As of January 1, 2021, Farley Co. had a credit balance of $528,000 in its…

20. As of January 1, 2021, Farley Co. had a credit balance of
$528,000 in its allowance for uncollectible accounts. Based on
experience, 4% of Farley’s credit sales have been uncollectible.
During 2021, Farley wrote off $640,000 of accounts receivable.
Credit sales for 2021 were $18,600,000. In its December 31, 2021,
balance sheet, what amount should Farley report as allowance for
uncollectible accounts?
21. As of January 1, 2021, Barley Co. had a credit balance of
$537,000 in its allowance for uncollectible accounts. Based on
experience, 3% of Barley’s gross accounts receivable have been
uncollectible. During 2021, Barley wrote off $667,000 of accounts
receivable. Barley’s gross accounts receivable as December 31, 2021
is $18,850,000. In its December 31, 2021, balance sheet, what
amount should Barley report as allowance for uncollectible
accounts?