Question
Entity G uses the percentage-of-receivables basis for recording bad debts expense. The accounts receivable balance is $750,000. Management estimates that 3% of accounts receivable will
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Entity G uses the percentage-of-receivables basis for recording bad debts expense. The accounts receivable balance is $750,000. Management estimates that 3% of accounts receivable will be uncollectible. Before the adjusting entry, the Allowance for Doubtful Accounts has a debit balance of $2,000. What is the net (cash) realizable value of the accounts receivable immediately after adjustment?
$752,000
$727,500
$750,000
$725,500
Entity G uses the percentage-of-receivables basis for recording bad debts expense. The accounts receivable balance is $750,000. Management estimates that 3% of accounts receivable will be uncollectible. Before the adjusting entry, the Allowance for Doubtful Accounts has a debit balance of $2,000. What is the net (cash) realizable value of the accounts receivable immediately after adjustment?
| $752,000 | ||
| $727,500 | ||
| $750,000 | ||
| $725,500 |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
