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 amount from the total accounts receivable.

Net Accounts Receivable = Total Accounts Receivable - Estimated Bad Debts Expense 
Net Accounts Receivable = $20,000 - $2,850 
Net Accounts Receivable = $17,150

Therefore, the correct answer is B) $17,150.

The Following Information Is from the Records of Armadillo Camera