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Hailey Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $89,000 of revenue on account
Hailey Medical Supply Co., which had no beginning balance in its Accounts Receivable and Allowance for Doubtful Accounts, earned $89,000 of revenue on account during 2011. During 2011, Hailey collected $65,800 of cash from its receivables accounts. The company estimates that it will be unable to collect 19% of revenue on account. The amount of net realizable value of receivables on the December 31, 2011 balance sheet would be: Multiple Choice $35,702. $22,200. $6,290. $23,200.
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