Help Save&Exit The following information applies to the questions displayed belo

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Help Save&Exit The following information applies to the questions displayed below Leach Inc. experienced the following events for the first two years of its operations: 2018 1. Issued $10,000 of common stock for cash. 2. Provided $110,000 of services on account. 3. Provided $25,000 of services and received cash 4 Collected $85,000 cash from accounts recelvable. 5. Paid $20,000 of salaries expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible. 2019: Wrote off an uncollectible account for $740. 2. Provided $130,000 of services on account. 3. Provided $30,000 of services and collected cash. 4 Collected $112,000 cash from accounts receivable. 5. Paid $22,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncolectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible. c What is the net realizable value of the accounts receivable at December 31, 2018? , MacBook Air

Explanation / Answer

Gross accounts receivable at December 31,2018 = 110000-85000=$25000 Allowance balance = 25000*8%= $2000 Net realizable value at December 31,2018 = 25000-2000=$23000

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