The following information is from the records of Armadillo Camera Shop:
$$\begin{array} { | l | l | }
\hline \text { Accounts receivable, 31 December 2016 } & \$ 22,000 \text { (debit) } \
\hline \text { Allowance for doubtful debts, 31 December 2016 } & \
\hline \text { prior to adjustment } & 900 \text { (debit) } \
\hline \text { Net credit sales for 2016 } & 94,000 \
\hline \text { Accounts written off as uncollectable during 2016 } & 400 \
\hline
\end{array}$$
Bad debts expense is estimated by the ageing of accounts receivable method.Management estimates that $3150 of accounts receivable will be uncollectable.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:
$$\begin{array} { | l | l | } 
\hline \text { Accounts receivable, 31 December 2016 } & \$ 22,000 \text { (debit) } \
\hline \text { Allowance for doubtful debts, 31 December 2016 } & \
\hline \text { prior to adjustment } & 900 \text { (debit) } \
\hline \text { Net credit sales for 2016 } & 94,000 \
\hline \text { Accounts written off as uncollectable during 2016 } & 400 \
\hline
\end{array}$$
Bad debts expense is estimated by the ageing of accounts receivable method.Management estimates that $3150 of accounts receivable will be uncollectable.Calculate the amount of net accounts receivable after the adjustment for bad debts.

Quizplus · Accepted Answer

The Answer is C

The Following Information Is from the Records of Armadillo Camera