Answer:
here correct option is A. $7,000
Explanation:
given data
Stripling earned = $700,000
collected cash = $710,000
company wrote off = $8,000
revenue = 1 %
to find out
net realizable value of receivable
solution
we will find here amount of uncollectible expense that are for year 2
amount of uncollectible expense = Sales revenue for year 2 × revenue %
put here value we wet
amount of uncollectible expense = $700,000 × 1 %
amount of uncollectible expense = $700,000 × 0.01
amount of uncollectible expense = $7,000
so here correct option is A. $7,000
