The December 31, 2019 unadjusted Trial Balance of Kermit Company included the following accounts:
If it is estimated that 1 percent of the Sales Revenue is uncollectible, the Net Realizable Value of Accounts Receivable on December 31, 2019 Balance Sheet will be:

Question

The December 31, 2019 unadjusted Trial Balance of Kermit Company included the following accounts:
 If it is estimated that 1 percent of the Sales Revenue is uncollectible, the Net Realizable Value of Accounts Receivable on December 31, 2019 Balance Sheet will be:

Quizplus · Accepted Answer

Bad Debt Expense = $250,000 x 1% = $2,500
Allowance for Doubtful Accounts = $(1,500) + $2,500 = $1,000
Net Realizable Value of Accounts Receivable = $20,000 - $1,000 = $19,000

The December 31, 2019 Unadjusted Trial Balance of Kermit Company