In the first year of operation, Ralph's Repair Service recognized $480,000 of service revenue on account. The ending accounts receivable balance was $88,000. Ralph estimates that 2% of sales on account will not be collected. During Year 1, Ralph wrote off a $200 receivable that was determined to be uncollectible. Assume there were no other transactions affecting accounts receivable.
Required: a)What amount of cash was collected in Year 1?b)What amount of uncollectible accounts expense was recognized in Year 1?c)What is the net realizable value of accounts receivable that will be reported on the balance sheet as of December 31, Year 1?

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The Answer of In the first year of operation, Ralph's Repair Service recognized $480,000 of service revenue on account. The ending accounts receivable balance was $88,000. Ralph estimates that 2% of sales on account will not be collected. During Year 1, Ralph wrote off a $200 receivable that was determined to be uncollectible. Assume there were no other transactions affecting accounts receivable.
Required: a)What amount of cash was collected in Year 1?b)What amount of uncollectible accounts expense was recognized in Year 1?c)What is the net realizable value of accounts receivable that will be reported on the balance sheet as of December 31, Year 1?

In the First Year of Operation, Ralph's Repair Service Recognized