Daley Company uses the allowance method. At December 31, 2015, the company’s bal

Question

Daley Company uses the allowance method. At December 31, 2015, the company’s balance sheet reports Accounts Receivable, Net in the amount of $23,500. On January 2, 2016, Daley writes off a $2,800 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off?

a) $23,500.

b) $20,700.

c) $26,300.

d) $2,800.

Daley Company uses the allowance method. At December 31, 2015, the company’s balance sheet reports Accounts Receivable, Net in the amount of $23,500. On January 2, 2016, Daley writes off a $2,800 customer account balance when it becomes clear that the customer will never pay. What is the amount of Accounts Receivable, Net after the write-off?

Explanation / Answer

Amount of accounts receivable, net after the write off = $23500 - $2800 = $20700

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.