Question
A&B Foods Data for the year ended December 31 are presented below. Sales (100% on credit) $2,100,000 Sales returns 150,000 Accounts Receivable (December 31) 420,000
A&B Foods
Data for the year ended December 31 are presented below.
| Sales (100% on credit) | $2,100,000 |
| Sales returns | 150,000 |
| Accounts Receivable (December 31) | 420,000 |
| Allowance for Doubtful Accounts | |
| (Before adjustment at December 31) | 25,000 |
| Estimated amount of uncollected accounts based on an aging analysis | 75,000 |
If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
a. $395,000
b. $345,000
c. $420,000
d. $370,000
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After The Quality Audit Closing The Loop On The Audit Process
Authors: J. P. Russell, Terry Regel
2nd Edition
0873894863, 978-0873894869
