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hichkok12 [17]
3 years ago
7

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 $605,000 Unadjusted Credit balance in Allowance for Doubtful Accounts 84,000 Estimated Uncollectible Accounts Receivable 93,000 What is the amount of Accounts Receivable, Net that will be reported on the balance sheet at December 31?
a. $596,000
b. $512,000
c. $521,000
d. $419,000
Business
1 answer:
snow_lady [41]3 years ago
4 0

Answer:

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

Explanation:

given data

Accounts receivable = $605,000

Doubtful Accounts  = $84,000

Accounts Receivable = $93,000

to find out

amount of Accounts Receivable, Net that will be reported on the balance sheet

solution

we know bad debt expense  is difference between 93,000 and 84,000 i.e 9000

so new balance of Allowance for doubtful debts = 93,000

so we can say The amount of accounts receivable Net is

The amount of accounts receivable Net = 605,000 - 93,000

The amount of accounts receivable Net = 512000

so correct option is b. $512,000

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Answer:

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Explanation:

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7 0
3 years ago
How does an increase in bad debt affect a sole trader financial statement
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Answer:

It will increase expense, thereby reducing the profit mentioned in the income statement and decrease the current asset (debtor) recorded in the balance sheet.

Explanation:

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As such when the bad debt amount is increased it will result in a rise in expense and therefore the profit, as stated in the profit and loss (income statement) of the sole trader would decrease.

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Hence, the expenses will increase while the current asset will decrease.

7 0
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andrezito [222]

Answer:

The correct answer is C: $20

Explanation:

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Answer: did not change

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