The following information is from the records of Chicago Photography: $\begin{array}{|l|r|}
\hline\text { Accounts Receivable, December } 31,2019 & \$ 22,000 \text { (debit) } \
\hline \text { Allowance for Bad Debts, December } 31,2019 & \
\text { prior to adjustment } & 800 \text { (debit) }\
\hline \text { Net credit sales for } 2019 & 95,000\
\hline \text { Accounts written off as uncollectible during }\
2019&450\
\hline
\end{array}$ Bad debts expense is estimated by the aging-of-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 Chicago Photography: $\begin{array}{|l|r|}
\hline\text { Accounts Receivable, December } 31,2019 & \$ 22,000 \text { (debit) } \
\hline \text { Allowance for Bad Debts, December } 31,2019 &  \
\text { prior to adjustment } &  800 \text { (debit) }\
\hline \text { Net credit sales for } 2019 & 95,000\
\hline \text { Accounts written off as uncollectible during }\
2019&450\
\hline 
\end{array}$ Bad debts expense is estimated by the aging-of-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 adjustment for bad debts, we need to subtract the estimated amount of uncollectible accounts from the total accounts receivable.

Total accounts receivable = $22,000

Estimated uncollectible accounts = $2,850

Net accounts receivable = $22,000 - $2,850 = $19,150

Therefore, the correct choice is B) $19,150.

The Following Information Is from the Records of Chicago Photography