vandarughb2875
12.03.2021 •
Business
The following balances were drawn from the accounts of Stripling Company as of December 31, Year 1.
Accounts Receivable $60,000
Allowance for Doubtful Accounts $9,000
During Year 2 Stripling earned $700,000 of revenue on account and collected $710,000 cash from accounts receivable. Also, the company wrote off $8,000 of accounts receivable that were classified as uncollectible during Year 2. If Stripling estimates uncollectible accounts expense to be 1% of revenue, the net realizable value of receivables as of December 31, Year 2 will be.
a. $50,000.
b. $32,000.
c. $34,000.
d. $42,000.
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Ответ:
b. $34,000
Explanation:
Accounts Receivable
Opening 60,000 Cash 710,000
Sales 700,000 Write off 8,000
End bal. 42,000
Allowance for Uncollectible account
Wrote off 8,000 Opening 9,000
Bad debts 7,000
End bal. 8,000
Net realizable account = Accounts receivable - Allowance for bad debt
Net realizable account = $42,000 - $8,000
Net realizable account = $34,000
Ответ:
L
L
L
L
L
Explanation: