Question
33 Gowns, Inc. uses the percentage of receivables basis to estimate its bad debts. For the year ended December 31, 2020, Gowns' total credit sales
33 Gowns, Inc. uses the percentage of receivables basis to estimate its bad debts. For the year ended December 31, 2020, Gowns' total credit sales are 3.000.000. Management of the company estimates that 3% of receivables will become uncollectible. The existing balance in the Allowances for Doubtful Accounts is a debit balance of 3,000. The Accounts Receivable balance at December 31, 2020 is 400.000. The cash realizable value of Accounts Receivable reported on the statement of financial position at December 31, 2020 is 1. None 2. 392.000. 3. 388.000. 4. 390,000. 5. 386.000
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