Answer:
Net accounts receivables in balance sheet $ 19,620
Explanation:
Computation of Net carrying value of receivables
Opening balance - Accounts Receivables $ 74,600
Add: Sales made on credit during year 2 $ 208,000
Less: Collections of receivables $ ( 258,900)
Less; Account receivables written off <u>$ ( 2,000)</u>
Account Receivables balance Year 2 $ 21,700
Allowance for doubtful accounts year 2
1 % of credit sales <u> $ ( 2,080)</u>
Net accounts receivables in balance sheet $ 19,620
The amounts written off are reduced from the accounts receivable accounts by debiting the allowance account.