uestion 14 2 pts Blimp Company uses the allowance method to account for uncollec

Question

uestion 14 2 pts Blimp 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 $900. During the year Blimp wrote off uncollectible receivables of $1,800. Blimp's recorded Bad Debt expense of $3,400. Blimp's year-end balance in Allowance for Bad Debts is $2,500. Blimp's ending balance of Accounts Receivable is $20,800. Compute the net realizable value of Accounts Receivable at year end O $20,800 O $19.000 O $18,300 O $17.400

Explanation / Answer

Solution:

Net realizable value of accounts receivables at year end = Gross accounts receivables - Ending balance of allowance for bad debts

= $20,800 - $2,500 = $18,300

Hence 3rd option is the right choice.

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