Question
On January 1, 2019, ABC Company had accounts receivable of $89,000 and an allowance for doubtful accounts with a credit balance of $17,000. During 2019,
On January 1, 2019, ABC Company had accounts receivable of $89,000 and an allowance for doubtful accounts with a credit balance of $17,000. During 2019, ABC Company reported sales (all on account) of $840,000; collected $625,000 cash from its credit customers; and wrote-off $12,000 of accounts receivable as uncollectible $12,000. ABC Company uses the net credit sales method to estimate bad debt expense and estimated bad debt expense for 2019 as 4% of net credit sales. Calculate the net realizable value of ABC Company's accounts receivable at December 31, 2019. Do not use decimals in your answer.
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