A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co.

Question:

A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co. is presented here:

The company's accounting records revealed the following information for the year ended December 31, 2011:
Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . $480,000
Cash collections from customers . . . . . . . . . . . . . . . . . 435,000
Accounts written off . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,500
Bad debts expense (accrued at 12/31/11) . . . . . . . . . . . 16,500
Required:
Calculate the net realizable value of accounts receivable at December 31, 2011, and prepare the appropriate balance sheet presentation for Gibbs Co., as of that point intime.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...