Ethan Corporation began 2020 with an $8,000 balance in accounts receivable and a $400 balance in the allowance for doubtful accounts. During the year 2020, the company had credit sales (sales on account) of $96,000 and had collections of 86,000 from customers. The company uses the allowance method and believes that 1 percent of its annual credit sales revenue will be uncollectible. There were no actual write-offs during the year.

The balance in the accounts receivable account of Ethan Corporation at the end of 2020 would be

a $ 10,000

b $18,000

c $ 9,600

d $ 17,600

Using the information provided in the previous question, the amount of uncollectible accounts expense appearing on the 2020 income statement of Ethan Corporation would be

a $ 100

b $ 960

c $ 1,360

d $ 560

Using the information provided in the first question, the net realizable value of receivables for Ethan Corporation at the end of 2020 would be

a $17,040

b $18,000

c $16,640

d $17,600