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Accounts Receivable Balance

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QUESTION 1.
Christina Ribaudo Company's account balances at December 31 for Accounts Receivable and the related Allowance for Doubtful Accounts are $750,000 and $20,000, respectively. From an analysis of accounts receivable, it is estimated that $42,000 of the December 31 receivables will be uncollectible. After adjustment for the above facts, the net realizable value of accounts receivable would be
a. $750,000
b. $730,000
c. $688,000
d. $708,000

QUESTION 2
Certain information relative to the 2005 operations of Christopher Switzer Co. follows:
Accounts receivable, January 1, 2005 $20,000
Accounts receivable collected during 2005 39,000
Cash sales during 2005 12,000
Inventory, January 1, 2005 18,000
Inventory, December 31, 2005 16,500
Purchases of inventory during 2005 33,000
Gross margin on sales 13,500

What is Switzer's accounts receivable balance at December 31, 2005?
a. 14,000
b. 17,000
c. 20,000
d. 29,000

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Solution Summary

The solution explains how to calculate the ending accounts receivable balance.

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QUESTION 1.
Christina Ribaudo Company's account balances at December 31 for Accounts Receivable and the related Allowance for Doubtful Accounts are $750,000 and $20,000, respectively. From an analysis of accounts receivable, it is estimated that $42,000 of the December 31 receivables will be uncollectible. After adjustment for the above facts, the net realizable value of accounts receivable would be
a. $750,000 ...

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