On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances
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Question:
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $72,400 and $3,200, respectively. During Year 2, Kincaid reported $197,000 of credit sales, wrote off $1,850 of receivables as uncollectible, and collected cash from receivables amounting to $239,900. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
What is the net realizable value of receivables that will be reported on Kincaid's Year 2 balance sheet?
A) $24,330
B) $29,500
C) $25,680
D) $27,650
Related Book For
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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