Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prime has an ending balance in the allowance for uncollectible accounts of $7000. What is the net realizable value of accounts receivable?

$93,000 T/F

Question

Ahmed Mccann

Business

11 January, 01:42

Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prime has an ending balance in the allowance for uncollectible accounts of $7000. What is the net realizable value of accounts receivable?

$93,000 T/F

+2

Answers (1)

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Abel · Answer 1

True

Explanation:

Prime's net realizable value of accounts receivable = accounts receivable balance - allowance for uncollectible accounts = $100,000 - $7,000 = $93,000

Bad debt expenses have already been debited, so they are no longer part of the allowance for uncollectible accounts.

Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prime has an ending balance in the allowance for uncollectible accounts of $7000. What is the net realizable value of accounts receivable?$93,000 T/F

Prime Corp. has an ending balance in the accounts receivable account of $100,000. Prime recorded bed debt expense of $3000. Prime has an ending balance in the allowance for uncollectible accounts of $7000. What is the net realizable value of accounts receivable?

$93,000 T/F