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Bad Debt question

Hi! I need help calculating the net realizable value of A/R at 12/31/09, as well as preparing a balance sheet for the company.

Current assets section of balance sheet for Company B:

A/R - $63,000
Less: Allowance for bad debts - (9,000) $54,000

The company's accounting records revealed the following information for the year ended December 31, 2009:

Sales (on all accounts) ......................................$480,000
Cash collections from customers...........................$435,000
Accounts written off..........................................$10,500
Bad debts expense (accrued at 12/31/09)...................$16,500

Solution Preview

Hi! I need help calculating the net realizable value of A/R at 12/31/09, as well as preparing a balance sheet for the company.

Current assets section of balance sheet for Company B:

A/R - $63,000
Less: Allowance for bad debts - (9,000) $54,000

The company's accounting records revealed the ...

Solution Summary

This solution is comprised of a detailed explanation to calculate the net realizable value of accounts receivable at 12/31/09, as well as preparing a balance sheet for the company.

$2.19