Question 9 5.5 pts At January 1, 2019, Betty DeRose, Inc. ha d an allowance for

Question

Question 9 5.5 pts At January 1, 2019, Betty DeRose, Inc. ha d an allowance for bad debts with a $5,400 credit balance, During 2019, Bet ty wrote-off as uncollectible accounts receivable in the amount of $6,2 00. At December 31, 2019, Betty had total accounts receivable of $216,000 and prepared the following aging schedule: not past due 1% 1-30 days past due 4% 31-60 days past due 8% 61-90 days past due 25% over 90 days past due 40% total accounts receivable $100,000 60,000 28,000 18,000 $216,000 Calculate the net realizable value of Bet ty DeRose's accounts receivable at December 31, 2019

Explanation / Answer

Age Amount % uncollectible Allowance Not yet due 100000 1% 1000 1-30 days 60000 4% 2400 31-60 days 28000 8% 2240 61-90 days 18000 25% 4500 Over 90 days 10000 40% 4000 Total 216000 14140 Net realizable value = 216000-14140 = $201860

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