A portion of the current assets section of the December 31, 2011, balance sheet for Carr Co.

Question:

A portion of the current assets section of the December 31, 2011, balance sheet for Carr Co. is presented here:

The company's accounting records revealed the following information for the year ended December 31, 2011:
Sales (all on account) . . . . . . . . . . . . . . . . . . . . . . . . . . $400,000
Cash collections from customers . . . . . . . . . . . . . . . . . 410,000
Accounts written off . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Bad debts expense (accrued at 12/31/11) . . . . . . . . . . . 12,000
Required:
Using the information provided for 2011, calculate the net realizable value of accounts receivable at December 31, 2010, and prepare the appropriate balance sheet presentation for Carr Co., as of that point intime.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...