Answer:
The correct answer is $154,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the net amount of receivables by using following formula:
Net receivables = Accounts receivable account - Allowance accounts
So, Accounts receivable = Beginning balance + credit sales - cash collected - Amount written off
= $150,000 + $600,000 - $590,000 - $4000
= $156,000
And Allowance accounts = Beginning allowance account - amount written off
= $6,000 - $4,000
= $2,000
Now by putting the value, we get
Net receivables = $156,000 - $2,000
= $154,000.
Hence, the net amount of receivables is $154,000.
