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At January 1, 2014, XYZ Company reported an allowance for bad debts with a $17,000 credit balance . During 2014, XYZ Company wrote-off as uncollectible
At January 1, 2014, XYZ Company reported an allowance for bad debts with a $17,000 credit balance. During 2014, XYZ Company wrote-off as uncollectible accounts receivable totaling $25,000. Based on an aging of its accounts receivable at December 31, XYZ Company determined that its bad debt expense for 2014 was equal to $48,000. Assuming XYZ Company had total accounts receivable of $280,000 at December 31, 2014, then its net realizable value at December 31, 2014 must be equal to:
$207,000 |
$232,000 |
$190,000 |
$224,000 |
$240,000 |
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