Financial Accounting: Account Receivable

Question

Wechsler Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December 31 and gathered the following information:


Accounts receivable $620,000
Unadjusted Credit balance in Allowance for Doubtful Accounts 96,000
Estimated Uncollectible Accounts Receivable 105,000


What is the amount of Accounts Receivable, Net that will be reported on the balance sheet at December 31?
$611,000
$410,000
$515,000
$524,000

Answer 1

Hello Becky,

 

 

To get the accounts receivable net you  :

 

subtract  the estimated uncollectable accounts  receivable from  the accounts receivable

 

 

$620,000 − $105,000   = $515,000