Becky had net sales (all on account in 2014 of $600,000. at december 31, 2014, before adjusting entries, the balances in selected accounts were: accounts receivable $750,000 debit, and allowance for doubtful accounts $1,500 debit. becky estimates that 3% of its net sales will prove to be uncollectible. what is the net realizable value of the receivables reported on the financial statements at december 31, 2014?

Question

Roland Patterson

Business

1 July, 21:09

Becky had net sales (all on account in 2014 of $600,000. at december 31, 2014, before adjusting entries, the balances in selected accounts were: accounts receivable $750,000 debit, and allowance for doubtful accounts $1,500 debit. becky estimates that 3% of its net sales will prove to be uncollectible. what is the net realizable value of the receivables reported on the financial statements at december 31, 2014?

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Wesley Mckay · Answer 1

Given:

Net sales: 600,000

Accounts receivable: 750,000 debit

allowance for doubtful accounts: 1,500 debit

3% of the net sales will prove uncollectible

600,000 x 3% = 18,000

Net Realizable Value of the receivables to be reported on the financial statements at December 31,2014 is 733,500.

750,000 - 18,000 + 1,500 = 733,500