The following information is from the records of Armadillo Camera Shop: Bad debts expense is estimated by the aging-of-accounts-receivables method. Management estimates that $2,850 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts.

Question

The following information is from the records of Armadillo Camera Shop:  Bad debts expense is estimated by the aging-of-accounts-receivables method. Management estimates that $2,850 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts.

Quizplus · Accepted Answer

To calculate the net accounts receivable after the adjustment for bad debts, we need to subtract the estimated uncollectible accounts receivable from the total accounts receivable.

Total accounts receivable: $20,000 
Less: Estimated uncollectible accounts receivable: $2,850

Net accounts receivable: $17,150

Therefore, the best choice is B.

The Following Information Is from the Records of Armadillo Camera