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    Bad Debt question

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    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

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    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

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