Blimp Company uses the allowance method to account for uncollectible receivables. At the beginning of the...
Blimp Company uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $ 1 comma 300. During the year Blimp wrote off uncollectible receivables of $ 1 comma 800. Blimp recorded Bad Debts Expense of $ 3 comma 000. Blimp's year-end balance in Allowance for Bad Debts is $ 2 comma 500. Blimp's ending balance of Accounts Receivable is $ 20 comma 800. Compute the net realizable value of Accounts Receivable at year-end
Homework Answers
Answer
--Net realizable value of accounts receivable at year end
= Accounts receivables at year end - balance in Allowance for Bad
Debt accounts at year end
= $ 20,800 - $ 2500
= $ 18,300 [Answer]
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