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Outlook Department Store's Accounts Receivable Balance After Posting Net Collections

Question 28

Multiple Choice

Outlook Department Store's accounts receivable balance after posting net collections from customers for 2012 is $180,000. The customers took advantage of sales discounts of $15,000. Management aged the accounts receivable and estimate for uncollected account percentages as follows: $90,000 Current at 2%$50,000130 days past due at 5%$30,0003160 days past che at 10%$10,00060+ days past due at 25%\begin{array}{ll}\$ 90,000 & \text { Current at } 2 \% \\\$ 50,000 & 1-30 \text { days past due at } 5 \% \\\$ 30,000 & 31-60 \text { days past che at } 10 \% \\\$ 10,000 & 60+\text { days past due at } 25 \%\end{array} The net realizable value of the accounts receivable is:


A) $173,200.
B) $170,200.
C) $172,700.
D) $180,000.

Correct Answer:

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