Question 17

1. In the balance sheet at the end of 2019 and 2020, ABC Inc. reported an allowance for uncollectible accounts of $90,000 and $105,000, respectively. During 2020, ABC wrote off $10,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,500,000, and cash collections from credit customers totaled $1,500,000.

1. 1. What bad debt expense would ABC report in its income statement for 2020?

1. 2. What amount ofnet realizable value would ABC report in its 2020 balance sheet for itsaccounts receivable ?