Ask Question
30 June, 02:42

On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts

was $1,400. On January 15, 2013 a $400 uncollectible account was written-off. The net realizable value of accounts

receivable immediately after the write-off is:

A. 518.100.

B. $16,700.

C. 517.100.

D. $17,500.

On January 1, 2013 Garcia Company had an $8.000 balance in the Accounts Receivable account and a zero balance in the

Allowance for Doubtful Accounts account. During 2013, Garcia provided $52,000 of service on account. The company

collected $48,500 cash from account receivable. Uncollectible accounts are estimated to be 2% of sales on account.

+3
Answers (2)
  1. 30 June, 05:33
    0
    C. $17,100.

    Explanation:

    Before Write off

    January 1, 2013 Accounts Receivable balance $18,500

    Less Allowance for Doubtful Accounts was $1,400

    Estimated realizable accounts accounts receivable $ 17,100

    The write off method does not affect the realizable value of the accounts receivable. Both assets and net income are affected in the period bad debts expense is predicted and recorded with an adjusting entry.

    After Write Off

    Accounts Receivable $ 18,100

    Less Allowance for Doubtful Accounts was $1,000

    Estimated realizable accounts accounts receivable $ 17,100

    Accounts Receivable $ 52,000

    Less Net realized accounts accounts receivable $ 48,500

    Uncollectibles (bad debts) $ 3,500
  2. 30 June, 06:08
    0
    Answer: A

    Explanation: Recieveable balance $18500, this is the cash inflow of the company

    Allowance for doubtful accounts $1400 this is usually a percentage of money set aside from cash inflow for debts e. t. c.

    Unaccountable account $400 usually debts

    Receivable after deduction of allowance of doubtful accounts.

    $18500 - $1400 = $ 17100

    Allowance of doubtful accounts after deduction of debts

    $1400 - $400 = $1000

    Amount receivable immediately after write off

    $17100 + $1000 = $18100
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, 2013, the Accounts Receivable balance was $18,500 and the balance in the Allowance for Doubtful Accounts was $1,400. On ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers