Problem $5\mathrm{.}32$

LO $5-5$

Analysis of accounts receivable and allowance for bad debts$-$determine ending balances A portion of the current assets section of the December $31,2022,$ balance sheet for

Gibbs Co$.$ is presented here:

The company's accounting records revealed the following information for the year ended December $31,2023$:

Required:

Calculate the net realizable value of accounts receivable at December $31,2023,$ and prepare the appropriate balance sheet presentation for Gibbs Co$.$ as of that point in

time. $($Hint: Use T$-$accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.$)$