Joshua Company had the following information in 2014. Accounts receivable 12/31/2014............................................................... 6,000 Allowance for uncollectible account 12/31/14
Question:
Joshua Company had the following information in 2014.
Accounts receivable 12/31/2014............................................................... 6,000
Allowance for uncollectible account 12/31/14 (before adjustment)........700
Credit sales during 2014...........................................................................43,000
Cash sales during 2014.............................................................................10,000
Collections from customers on account during 2014............................42,000
if uncollectible accounts are determined by the aging-of-receivables method to be $1,090, the uncollectible-account expense for 2014 would be $390. The balance of the Allowance account after the adjusting entry would be $1,090. The net realizable value of accounts receivable on the December 31, 2014 balance sheet would be:
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