Carpenter Company had a beginning and ending allowance for doubtful accounts balance of $13,000 and $15,000,respectively.Its beginning and ending accounts receivable balances were $75,000 and $83,000,respectively.If $16,000 of accounts were written off during the period,what was net accounts receivable at the end of the period?
A)$67,000
B)$68,000
C)$71,000
D)$83,000

Question

Quizplus · Accepted Answer

To find the net accounts receivable at the end of the period, we need to subtract the allowance for doubtful accounts from the ending accounts receivable balance.

The allowance for doubtful accounts increased from $13,000 to $15,000, which means that the company added $2,000 to the allowance during the period.

We also know that $16,000 of accounts were written off, meaning that those accounts were removed from the accounts receivable balance.

So the net accounts receivable at the end of the period is:

Ending accounts receivable balance ($83,000) - Ending allowance for doubtful accounts ($15,000) = $68,000 (option B)

Carpenter Company Had a Beginning and Ending Allowance for Doubtful