Joshua Company had the following information in 2014. loshua Company had the fol

Question

Joshua Company had the following information in 2014.

loshua Company had the following information in 2014. Accounts receivable 12/31/14 Allowance for uncollectible account 12/31/14 (before adjustment Credit sales during 2014 Cash sales during 2014 Collections from customers on account during 2014 f uncollectible accounts are determined by the aging-ofeceivables method to be $1,050, the uncollectible-account expense for 2014 would be $50. The balance of the Allowance account after the adjusting entry would be $1,050. The net 8,000 ,000 45,000 7,000 50,000 realizable value of accounts receivable on the December 31, 2014 balance sheet would be OA. $8,000 O B. S5,950. O C. $6,950 O D. s9,050.

Explanation / Answer

Net realizable value = Account receivable-Allowance for doubtful accounts

                             = 8000-1050

Net realizable value = 6950

so answer is c) $6950

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