Question
Sage Inc. experienced the following transactions for 2018, its first year of operations: 1.Issued common stock for $110,000 cash. 2.Purchased $195,000 of merchandise on account.
Sage Inc. experienced the following transactions for 2018, its first year of operations:
1.Issued common stock for $110,000 cash.
2.Purchased $195,000 of merchandise on account.
3.Sold merchandise that cost $148,000 for $294,000 on account.
4.Collected $264,000 cash from accounts receivable.
5.Paid $175,000 on accounts payable.
6.Paid $66,000 of salaries expense for the year.
7.Paid other operating expenses of $82,000.
8.Sage adjusted the accounts using the following information from an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent Likely to Be Uncollectible
Allowance Balance
Current
$
18,000
0.01
0-30
7,500
0.05
31-60
1,500
0.10
61-90
1,500
0.20
Over 90 days
1,500
0.50
- What is the net realizable value of the accounts receivable at December 31, 2018?
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