est:Exam 2 Time Remaining: 00:17 05 SubmitTest This Question: 1 pt 21of41 (13 co
ID: 2593449 • Letter: E
Question
est:Exam 2 Time Remaining: 00:17 05 SubmitTest This Question: 1 pt 21of41 (13 complete) This Test: 41 pts possible Question Help * Prior to adjustments, Wlett Company's account balances at December 31, 2017, for Accounts Recevable and the related Allowance for Uncolectible $2 200,000 and $150,000, respectively An aging of accounts receivable indicated that realizable value of accounts recelvable at December 31, 2017, was $204,000 of the December 31,20 017, receivables may be uncollectible The net O A. $1,996.000 O B. $2200,000 O C. $2.050,000 D. $1,846,000 ck to select your answer OType here to search enovO 0+ 5 6 7 8 9 0Explanation / Answer
Since an allowance for doubtful debts has a balance of $150000, the bad debts that are not expected to be collectedwill be set off first against the allowance for doubtful debts account and then will be deducted from the accounts receivable balance to calculate the net realisable value of accounts receivables
SO, Net realsiable value = Accounts receivable - Bad debts
= $2200000 - $204000
= $1996000
Option A
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