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Lakeview Inc. uses the percentage of credit sales method to record its uncollectible accounts, estimating that 1.5% of credit sales will not be collected. During
Lakeview Inc. uses the percentage of credit sales method to record its uncollectible accounts, estimating that 1.5% of credit sales will not be collected. During 2020, Lakeview recorded 1,000,000 of credit sales.
At December 31, 2020, Lakeview's ledger shows the following unadjusted balances:
Accounts receivable: $185,000 debit
Allowance for uncollected accounts: $2,200 credit
What net book value of Accounts Receivable should Lakeview report on its December 31, 2020 balance sheet?
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