On Cairo Corp.'s December 31, 2017 statement of financial position, the current receivables consisted of the following: At December 31, 2017, the correct total of Cairo's current net receivables was

Question

On Cairo Corp.'s December 31, 2017 statement of financial position, the current receivables consisted of the following:  At December 31, 2017, the correct total of Cairo's current net receivables was

Quizplus · Accepted Answer

To calculate the current net receivables, we need to subtract the allowance for doubtful accounts from the current gross receivables. 
Current gross receivables:
Trade receivables = $80,000 + $10,000 = $90,000
Less: Allowance for doubtful accounts = $15,500
Current net receivables = $74,500