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Rosebud Motel began its fiscal year with accounts receivable of $43,000 and allowance for bad debts of $2,800. It had credit sales of $52,300 and
Rosebud Motel began its fiscal year with accounts receivable of $43,000 and allowance for bad debts of $2,800. It had credit sales of $52,300 and collections from customers of $58,800. It did not write off any specific receivables this year. Rosebud estimates bad debts based on an accounts receivable aging schedule. Its aging schedule is presented below. Based on this information, what is the carrying value (net amount) of accounts receivable on Rosebud's balance sheet? Days outstanding Accounts receivable Estimated % Uncollectible 0 - 30 days $21,000 3% 31 - 60 days 14,000 10% > 60 days 1,500 50% $20,920 $2,780 $33,720 $36,500
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