A business is preparing the final adjusting journal entry for bad debts expense at the end of the year Sales for the year were in the amount of $400,000 The aging of accounts receivable schedule indicates that the Allowance for Doubtful Accounts should have a year end balance of $16,000 The unadjusted balance in the Allowance for Doubtful Accounts account is a $4,000 credit balance The control account for Accounts Receivable in the general ledger shows a balance of $105,000 Following the recording of the necessary adjustments for bad debts, the statement of financial position will show the net realizable value of accounts receivable at the amount of 105,000 89,000 101,000 16,000 The correct answer is 89,000 Please explain why Thank you Your answer is incorrect A business is preparing the final adjusting journal entry for bad debts expense at the end of the year Sales for the year were in the amount of $400,000 The aging of accounts receivable schedule indicates that the Allowance for Doubtful Accounts should have a year end balance of $16,000 The unadjusted balance in the Allowance for Doubtful Accounts account is a $4,000 credit balance The control account for Accounts Receivable in the general ledger shows a balance of $105,000 Following the recording of the necessary adjustments for bad debts, the statement of financial position will show the net realizable value of accounts receivable at the amount of $105,000 $89,000 $101,000 $16,000 Solution Assistance Used ($105,000 $16,000) $89,000

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Posted on Jul 22, 2024

A business is preparing the final adjusting journal entry for bad debts expense at the end of the year. Sales for the year were in

A business is preparing the final adjusting journal entry for bad debts expense at the end of the year. Sales for the year were in the amount of $400,000. The aging of accounts receivable schedule indicates that the Allowance for Doubtful Accounts should have a year-end balance of $16,000. The unadjusted balance in the Allowance for Doubtful Accounts account is a $4,000 credit balance. The control account for Accounts Receivable in the general ledger shows a balance of $105,000. Following the recording of the necessary adjustments for bad debts, the statement of financial position will show the net realizable value of accounts receivable at the amount of?

105,000

89,000

101,000

16,000

The correct answer is 89,000 Please explain why. Thank you!

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* Your answer is incorrect. A business is preparing the final adjusting journal entry for bad debts expense at the end of the year. Sales for the year were in the amount of $400,000. The aging of accounts receivable schedule indicates that the Allowance for Doubtful Accounts should have a year-end balance of $16,000. The unadjusted balance in the Allowance for Doubtful Accounts account is a $4,000 credit balance. The control account for Accounts Receivable in the general ledger shows a balance of $105,000. Following the recording of the necessary adjustments for bad debts, the statement of financial position will show the net realizable value of accounts receivable at the amount of $105,000 $89,000 $101,000 $16,000 Solution Assistance Used ($105,000 - $16,000) = $89,000