Explore BrainMass

Explore BrainMass

    Accounts Receivable Balance

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

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 7:22 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/accounts-receivable-balance-95953

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19

    ADVERTISEMENT