| A portion of the current assets section of the December 31, 2013, balance sheet for Gibbs Co. is presented here: | | | | | | | | Accounts receivable | $ | 21,100 | | | | | Less: Allowance for bad debts | | (2,000 | ) | $ | 19,100 | | | | The company's accounting records revealed the following information for the year ended December 31, 2014: | | | | | | Sales (all on account) | $ | 150,500 | | Cash collections from customers | | 149,000 | | Accounts written off | | 2,600 | | Bad debts expense (accrued at 12/31/14) | | 5,800 | | | | Calculate the net realizable value of accounts receivable at December 31, 2014, and prepare the appropriate balance sheet presentation for Gibbs Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.) (Amounts to be deducted should be indicated with minus sign.) | | | |
