At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $26,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables?

Question

Quizplus · Accepted Answer

The accounts receivable will be reported as the gross receivable balance minus the allowance for doubtful accounts. The allowance is 4% of $26,000, which is $1,040. Therefore, the net receivables reported will be $26,000 - $1,040 = $24,960.

At What Amount Will Accounts Receivable Be Reported on the Balance