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13. A company's accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are
13. A company's accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are 1 to 30 days past due are 2% uncollectible; and $50,000 of the accounts that are 31 to 60 days past due are 10% uncollectible. What is the net realizable value of the accounts receivable? a. $143,000 b. $145,000 c. $148,000 d. $150,000 AT&U Company has the following data for the year ended December 31, Year 1: $2,500,000 50,000 640,000 Sales (credit) Sales returns and allowances Accounts receivable (December 31, Year 1) Allowance for doubtful accounts (before adjustment at December 31, Year 1) Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1) 20,000 45,000 14. Refer to AT&U Company. If the company uses the aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for Year 1? a. $20,000 b. $25,000 c. $45,000 d. $65,000
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