The following information was presented in the balance sheet of Gloria Company as of December 31, 2016: $$\begin{array}{l}
\text {Trade accounts receivable, net of allowance for }\\text { uncollectibles of \$ 100,000 }&\$1,600,000\
\end{array}$$ ? Which one of the following statements is true?
A) Gloria expects that $1,700,000 of accounts receivable will be collected after year end.
B) The balance in the Accounts Receivable account in Gloria's general ledger is $1,600,000.
C) The net realizable value of Gloria's accounts receivable is $1,600,000.
D) Gloria expects to collect only $1,500,000 from its customers.

Question

The following information was presented in the balance sheet of Gloria Company as of December 31, 2016: $$\begin{array}{l}
\text {Trade accounts receivable, net of allowance for }\\text { uncollectibles of  \$ 100,000 }&\$1,600,000\
\end{array}$$ ? Which one of the following statements is true?
A) Gloria expects that $1,700,000 of accounts receivable will be collected after year end.
B) The balance in the Accounts Receivable account in Gloria's general ledger is $1,600,000.
C) The net realizable value of Gloria's accounts receivable is $1,600,000.
D) Gloria expects to collect only $1,500,000 from its customers.

Quizplus · Accepted Answer

The net realizable value of accounts receivable is the amount expected to be collected, which is the gross amount minus the allowance for uncollectibles. Here, it's $1,600,000 after subtracting the allowance of $100,000.

The Following Information Was Presented in the Balance Sheet of Gloria