Answer:
$ 260,000
Explanation:
It is given that :
On Jan 1, 2021, Farley Co. have a credit balance = $530,000
Percentage of credit sales to be uncollectible = 2%
Accounts receivable = $646,000
Credit sales for 2021 = $18,800,000
Therefore, the amount reported as the allowance for the uncollectible accounts = ( 18,800,000 x 2% ) + 530,000 - 646,000
= 376,000 + 530,000 - 646,000
= 260,000
So the amount to be reported as the allowance for the uncollectible accounts = $ 260,000
