Lithotech,Inc had net sales in 2016 of $700,000.At December 31,2016,before adjusting entries,the balances in selected accounts were: accounts receivable $125,000 debit,and allowance for doubtful accounts $1,200 credit.Lithotech estimates that 2% of its net sales will prove to be uncollectible.What is the cash realizable value of the receivables reported on the statement of financial position at December 31,2016?
A)$109,800
B)$111,000
C)$112,200
D)$122,500

Question

Quizplus · Accepted Answer

The Answer of Lithotech,Inc had net sales in 2016 of $700,000.At December 31,2016,before adjusting entries,the balances in selected accounts were: accounts receivable $125,000 debit,and allowance for doubtful accounts $1,200 credit.Lithotech estimates that 2% of its net sales will prove to be uncollectible.What is the cash realizable value of the receivables reported on the statement of financial position at December 31,2016?
A)$109,800
B)$111,000
C)$112,200
D)$122,500

Lithotech,Inc Had Net Sales in 2016 of $700,000