Johnnie Company's Accounts Receivable account has a balance of $1,932,000 and the Allowance for Doubtful Accounts has a debit balance of $5,100 at fiscal year-end prior to adjustment.
If the estimate based on the percentage of sales approach to estimating uncollectibles is $119,400, the net realizable value of accounts receivable reported on the balance sheet after adjustment is:

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts = $(5,100) + $119,400 = $114,300
Net Realizable Value of Accounts Receivable = $1,932,000 - $114,300 = $1,817,700

Johnnie Company's Accounts Receivable Account Has a Balance of $1,932,000