Beginning accounts receivable | 164,000 |
Beginning allowance for doubtful accounts | 5,400 |
Sales | 2,000,000 |
Collections on account | 1,720,000 |
Accounts written off | 11,800 |
Collections of accounts previously written off | 1,100 |
Current balance of bad debt expense | 0 |
Uncollectible accounts as a percentage of receivables | 4.00% |
Using the balance sheet approach, what is the net realizable value of accounts receivable?
EB A/R
(EB Allowance for doubtful accounts) - calculated as EB A/R times the "Uncollectible Accounts as a Percentage of A/R"
Net Realizable Value of A/R
Ending balance of account receivable = 164000+2000000-1720000-11800 = 432200
Ending balance of Allowance for doubtful accounts = 432200*4% = 17288
Net realizable value = 432200-17288 = 414912
Beginning accounts receivable 164,000 Beginning allowance for doubtful accounts 5,400 Sales 2,000,000 Collections on account 1,720,000...
Beginning accounts receivable 164,000 Beginning allowance for doubtful accounts 5,400 Sales 2,000,000 Collections on account 1,720,000 Accounts written off 11,800 Collections of accounts previously written off 1,100 Current balance of bad debt expense 0 Uncollectible accounts as a percentage of receivables 4.00% Using the balance sheet approach, what is the ending balance of bad debt expense?
Questions 4 and 5 use the following information. Problem 3, Question 5. Beginning accounts receivable 164,000 Beginning allowance for doubtful accounts 5,400 Sales 2,000,000 Collections on account 1,720,000 Accounts written off 11,800 Collections of accounts previously written off 1.100 Current balance of bad debt expense Uncollectible accounts as a percentage of receivables 4.00% 5) Using the balance sheet approach, what is the net realizable value of accounts receivable? Numeric Response
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