Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Harrison Company records bad debt expense using the net credit sales method and has estimated that 4% of its credit sales will prove to be

Harrison Company records bad debt expense using the net credit sales method and has estimated that 4% of its credit sales will prove to be uncollectible. During 2004, Harrison Company reported net credit sales of $150,000 and collected $120,000 cash from its credit customers. Additionally, Harrison Company wrote-off as uncollectible accounts receivable of $7,000 during 2004. Accounts receivable at January 1, 2004 were $70,000 and the allowance for doubtful accounts had a $9,000 credit balance at January 1, 2004.

Calculate the net realizable value of Harrison Company's accounts receivable at December 31, 2004. Do not use decimals in your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser

1st Edition

0072954442, 9780072954449

More Books

Students also viewed these Accounting questions

Question

What should Sheila have done to avoid interviews like this one?

Answered: 1 week ago