Y 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

Y 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 accounts from the accounts receivable balance.

Net accounts receivable = Accounts receivable - Estimated uncollectible accounts
Net accounts receivable = $22,000 ($22,400 - 2%*$400,000)

Y Company Obtained the Following Balances from Its Computerized Accounting