At the beginning of Year 3 Omega Company had a $52,000 balance in its accounts receivable account
Fantastic news! We've Found the answer you've been seeking!
Question:
At the beginning of Year 3 Omega Company had a $52,000 balance in its accounts receivable account and a $1,400 balance in allowance for doubtful accounts. During Year 3 Omega experienced the following events.
-
(1) Omega earned $220,000 of revenue on account.
-
(2) Collected $230,000 cash from accounts receivable.
-
(3) Wrote-off $1,000 of accounts receivable as uncollectible.
Omega estimates uncollectible accounts to be 4% of receivables. Based on this information, the amount of NET REALIZABLE VALUE OF RECEIVABLES shown on the Year 3 balance sheet is
Multiple Choice
A. $39,360.
B. $41,000.
C. $42,640.
D. $43,000.
Related Book For
Posted Date: