Question
On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts was $1,400. On January 15, 2013
On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts was $1,400. On January 15, 2013 a $400 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:
A. $18,100.
B. $16,700.
C. $17,100.
D. $17,500.
On January 1, 2013 Garcia Company had an $8,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During 2013, Garcia provided $52,000 of service on account. The company collected $48,500 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
