The following information is from the 2013 records of Armadillo Camera Shop: Uncollectible accounts expense is estimated by the aging-of-accounts-receivable method. Management estimates that $2,850 of accounts receivable will be uncollectible. Which of the following will be the amount of Net accounts receivable after adjustment?

Question

The following information is from the 2013 records of Armadillo Camera Shop:  Uncollectible accounts expense is estimated by the aging-of-accounts-receivable method. Management estimates that $2,850 of accounts receivable will be uncollectible. Which of the following will be the amount of Net accounts receivable after adjustment?

Quizplus · Accepted Answer

To calculate the net accounts receivable, we need to subtract the estimated uncollectible accounts expense from the total accounts receivable. 
Total accounts receivable = $20,000 
Estimated uncollectible accounts expense = $2,850 
Net accounts receivable = $20,000 - $2,850 = $17,150 
Therefore, the best choice is B.

The Following Information Is from the 2013 Records of Armadillo