Bend Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Bend Corporation wrote off uncollectible receivables of $2,400. Bend Corporation recorded Bad Debts Expense of $3,000. Bend Corporation's year-end balance in Allowance for Bad Debts is $1,600. Bend Corporation's ending balance of Accounts Receivable is $21,000. Compute the net realizable value of Accounts Receivable at year-end. A. $18,000 B. $18,600 C. $21,000 D. $19,400
Bend Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Bend Corporation wrote off uncollectible receivables of $2,400. Bend Corporation recorded Bad Debts Expense of $3,000. Bend Corporation's year-end balance in Allowance for Bad Debts is $1,600. Bend Corporation's ending balance of Accounts Receivable is $21,000. Compute the net realizable value of Accounts Receivable at year-end. A. $18,000 B. $18,600 C. $21,000 D. $19,400
Chapter6: Business Expenses
Section: Chapter Questions
Problem 44P
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