Legacy Company uses the aging of accounts receivable method.The company performed an aging of accounts receivable on December 31 and gathered the following information: What is the amount of Accounts Receivable,Net that will be reported on the balance sheet at December 31?
A)$404,000
B)$396,800
C)$373,600
D)$412,800

Question

Legacy Company uses the aging of accounts receivable method.The company performed an aging of accounts receivable on December 31 and gathered the following information:  What is the amount of Accounts Receivable,Net that will be reported on the balance sheet at December 31?
A)$404,000 
B)$396,800 
C)$373,600 
D)$412,800

Quizplus · Accepted Answer

The adjusted balance of the Allowance for Doubtful Accounts will equal the estimated uncollectible accounts.
Net Realizable Value = Accounts Receivable − Adjusted balance of Allowance for Doubtful Accounts
= $420,000 − $23,200 = $396,800

Legacy Company Uses the Aging of Accounts Receivable Method