Question

Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable?A) 591,300. B) $108,300. C) $110,000. D) $93,000.

Answer 1

Answer:

the net account receivable is d.  $93,000

Explanation:

The computation of the net account receivable is shown below:

= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)

= ($110,000 - $1,700) - ($17,000 - $1,700)

= $108,300 - $15,300

= $93,000

Hence, the net account receivable is $93,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered