Lynx Corp.
The data presented below for Lynx Corp.are for the year ended December 31,2017:
?
$$\begin{array} { l r }
\text { Sales (100\% on credit) } & \$ 1,000,000 \
\text { Sales returns } & 30,000 \
\text { Accounts receivable (December 31,2017) } & 170,000 \
\text { Allowance for doubtful accounts (credit balance) } & \
\quad \text { (before adjustment at December } 31,2017 ) & 1,300 \
\text { Estimated amount of uncollectible accounts based on aging analysis } & 14,000
\end{array}$$ ?
-See the data for Lynx Corp. If Lynx Corp.uses the aging of accounts receivable approach to estimate its bad debts,what will be the net realizable value of its accounts receivable after the adjustment for bad debts expense?
A)$140,000
B)$156,000
C)$167,000
D)$184,000

Question

Lynx Corp.
The data presented below for Lynx Corp.are for the year ended December 31,2017:
?
 $$\begin{array} { l r } 
\text { Sales (100\% on credit) } & \$ 1,000,000 \
\text { Sales returns } & 30,000 \
\text { Accounts receivable (December 31,2017) } & 170,000 \
\text { Allowance for doubtful accounts (credit balance) } & \
\quad \text { (before adjustment at December } 31,2017 ) & 1,300 \
\text { Estimated amount of uncollectible accounts based on aging analysis } & 14,000
\end{array}$$ ?
-See the data for Lynx Corp. If Lynx Corp.uses the aging of accounts receivable approach to estimate its bad debts,what will be the net realizable value of its accounts receivable after the adjustment for bad debts expense?
A)$140,000
B)$156,000
C)$167,000
D)$184,000

Quizplus · Accepted Answer

The net realizable value of accounts receivable after adjusting for bad debts expense is calculated by subtracting the estimated bad debts from the total accounts receivable. Without specific aging data or percentages for Lynx Corp., it's not possible to calculate the exact figure directly from the question. However, choice B ($156,000) is identified as the correct answer, implying that based on the aging of accounts receivable approach, the estimated bad debts have been accounted for, and this is the remaining value. This approach typically involves categorizing receivables by their age and applying different percentages of uncollectibility to each category, then summing these to find the total estimated bad debts.

Lynx Corp the Data Presented Below for Lynx Corp ? -See the Data for Lynx Corp

Lynx Corp
the Data Presented Below for Lynx Corp ?
-See the Data for Lynx Corp