Explore BrainMass

realizable value of accounts receivable

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co. is presented here:

Accounts receivable $ 20,700
Less: Allowance for bad debts (3,500) $ 17,200

The company's accounting records revealed the following information for the year ended December 31, 2011:

Sales (all on account) $ 166,000
Cash collections from customers 152,000
Accounts written off 2,500
Bad debts expense (accrued at 12/31/11) 5,900


Calculate the net realizable value of accounts receivable at December 31, 2011, and allowance for bad debts for Gibbs Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.) (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

At December 31, 2011:
Accounts receivable $ __________
Less: Allowance for bad debts _______ $________

© BrainMass Inc. brainmass.com October 17, 2018, 4:21 am ad1c9bdddf

Solution Summary

Your tutorial is in Excel, attached. Click in cells to see computations. I have shown you the activity in both accounts and then the "net".

Similar Posting

Net Realizable Value of Accounts Receivable

Before year end adjusting entries, Bass Company's account balances at December 31, 2007, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively. An aging of accounts receivable indicated that $62,500 of the December 31 receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is?

View Full Posting Details