Z Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments: The company estimates that 2% of net sales will be uncollectible.After the correct adjusting entry has been made,what is the net accounts receivable on the year-end balance sheet?

Question

Z Company obtained the following balances from its computerized accounting information system at the end of the year before adjustments:  The company estimates that 2% of net sales will be uncollectible.After the correct adjusting entry has been made,what is the net accounts receivable on the year-end balance sheet?

Quizplus · Accepted Answer

The net accounts receivable can be calculated by subtracting the estimated uncollectible amount from the total accounts receivable. The calculation would be: $48,000 - (2% x $48,000) = $45,000. Therefore, the correct answer is C. The statement that accounts receivable appear on the income statement is incorrect as accounts receivable are shown on the balance sheet under current assets.

Z Company Obtained the Following Balances from Its Computerized Accounting