The December 31, 2019 unadjusted Trial Balance of Moonstar Company included the following accounts:
If it is estimated that 1 percent of the Sales Revenue is uncollectible, the Net Realizable Value of Accounts Receivable on December 31, 2019 Balance Sheet will be:

Question

The December 31, 2019 unadjusted Trial Balance of Moonstar Company included the following accounts:
 If it is estimated that 1 percent of the Sales Revenue is uncollectible, the Net Realizable Value of Accounts Receivable on December 31, 2019 Balance Sheet will be:

Quizplus · Accepted Answer

Bad Debt Expense = $750,000 x 1% = $7,500
Allowance for Doubtful Accounts = $(4,500) + $7,500 = $3,000
Net Realizable Value of Accounts Receivable = $60,000 - $3,000 = $57,000

The December 31, 2019 Unadjusted Trial Balance of Moonstar Company