Brickman Company uses the allowance method to account for uncollectible receivab

Question

Brickman Company uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Brickman wrote off uncollect ble 700 Bric mans year-end balance in A owance or a Debts is S 600. Bri k 's ding balance o co nts Rece abie s $19,500. Compute the net realizable value of Accounts Receivable at year-end. receivables of s2.100. Brickman recorded Bad Debts Expense of $2 O A. $16,800 O B. $19,500 C.$17.400 O D. $17,900

Explanation / Answer

Net Realizable value of accounts receivable is = Year end balance in accounts receivable - Year end balance in allowance for bad debts

Net Realizable value of accounts receivable at year end is = 19500-1600

Net Realizable value of accounts receivable at year end is = $ 17,900 /-

Answer is Option D).

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