At year-end, Atkins Company applies the income statement approach in estimating uncollectible accounts expense and determines such expense to be 2% of net sales. At December 31 of the current year, accounts receivable total $600,000, and Allowance for Doubtful Accounts has a credit balance of $4,200 prior to adjustment. Net sales for the current year were $2,300,000. Compute the net realizable value of accounts receivable to be reported in Dewey's December 31 balance sheet.

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The Answer of At year-end, Atkins Company applies the income statement approach in estimating uncollectible accounts expense and determines such expense to be 2% of net sales. At December 31 of the current year, accounts receivable total $600,000, and Allowance for Doubtful Accounts has a credit balance of $4,200 prior to adjustment. Net sales for the current year were $2,300,000. Compute the net realizable value of accounts receivable to be reported in Dewey's December 31 balance sheet.

At Year-End, Atkins Company Applies the Income Statement Approach in Estimating