The following comparative financial statements for the years ended December 31,Year 2 and Year 1 are provided for Air Plus Company:
$\begin{array} { l r r }
\text { Balance Sheet: } & \text { Year 2 } & \text { Year 1 } \
\quad \text { Cash and cash equivalents } & \$ 87,000 & \$ 71,600 \
\text { Accounts receivables, less allowance for doubtful } & & \
\quad \text { accounts of \$90 (Year 2) and \$82 (Year 1) } & 3,800 & 2,500 \
\text { Notes receivable } & 15,000 & 20,000 \
& & \
\text { Income Statement: } \
\quad \text { Net sales for the year } & \$ 9,700 & \$ 8,800 \
\text { Net income for the year } & 920 & 1,050
\end{array}$

Answer these questions concerning the company's receivables:
A) What is the gross amount of accounts receivable at December 31, Year 2? Why is this amount different from the amount of receivables shown in the Year 2 column of the balance sheet?

Question

The following comparative financial statements for the years ended December 31,Year 2 and Year 1 are provided for Air Plus Company:
 $\begin{array} { l r r } 
\text { Balance Sheet: } & \text { Year 2 } & \text { Year 1 } \
\quad \text { Cash and cash equivalents } & \$ 87,000 & \$ 71,600 \
\text { Accounts receivables, less allowance for doubtful } & & \
\quad \text { accounts of \$90 (Year 2) and \$82 (Year 1) } & 3,800 & 2,500 \
\text { Notes receivable } & 15,000 & 20,000 \
& & \
\text { Income Statement: }  \ 
\quad \text { Net sales for the year } & \$ 9,700 & \$ 8,800 \
\text { Net income for the year } & 920 & 1,050
\end{array}$

Answer these questions concerning the company's receivables:
 A)	What is the gross amount of accounts receivable at December 31, Year 2? Why is this amount different from the amount of receivables shown in the Year 2 column of the balance sheet?

Quizplus · Accepted Answer

The Answer of The following comparative financial statements for the years ended December 31,Year 2 and Year 1 are provided for Air Plus Company:
 $\begin{array} { l r r } 
\text { Balance Sheet: } & \text { Year 2 } & \text { Year 1 } \
\quad \text { Cash and cash equivalents } & \$ 87,000 & \$ 71,600 \
\text { Accounts receivables, less allowance for doubtful } & & \
\quad \text { accounts of \$90 (Year 2) and \$82 (Year 1) } & 3,800 & 2,500 \
\text { Notes receivable } & 15,000 & 20,000 \
& & \
\text { Income Statement: }  \ 
\quad \text { Net sales for the year } & \$ 9,700 & \$ 8,800 \
\text { Net income for the year } & 920 & 1,050
\end{array}$

Answer these questions concerning the company's receivables:
 A)	What is the gross amount of accounts receivable at December 31, Year 2? Why is this amount different from the amount of receivables shown in the Year 2 column of the balance sheet?

The Following Comparative Financial Statements for the Years Ended December