After the December 31,2019 adjusting journal entries have been posted,Sinclair Enterprises has the following account balances (all accounts have normal balances): $$\begin{array} { | l | l | }
\hline \text { Account Title } & \text { Account Balance } \
\hline \text { Accounts Receivable } & \$ 154,000 \
\hline \text { Allowance for Bad Debts } & \$ 4700 \
\hline \text { Bad Debts Expense } & \$ 8000 \
\hline
\end{array}$$ What is the net realizable as of December 21,2019?
A) $158,700
B) $146,000
C) $141,300
D) $149,300

Question

After the December 31,2019 adjusting journal entries have been posted,Sinclair Enterprises has the following account balances (all accounts have normal balances): $$\begin{array} { | l | l | } 
\hline \text { Account Title } & \text { Account Balance } \
\hline \text { Accounts Receivable } & \$ 154,000 \
\hline \text { Allowance for Bad Debts } & \$ 4700 \
\hline \text { Bad Debts Expense } & \$ 8000 \
\hline
\end{array}$$ What is the net realizable as of December 21,2019?
A) $158,700
B) $146,000
C) $141,300
D) $149,300

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated by subtracting the allowance for bad debts from the total accounts receivable. Therefore, $154,000 - $4,700 = $149,300.

After the December 31,2019 Adjusting Journal Entries Have Been Posted,Sinclair