Question

Samuel, Inc. has Accounts Receivable of $150,000 and an Allowance for Doubtful Accounts of $13,000. If it writes-off a customer account balance of $1,300, what is the amount of its net accounts receivable

Answer 1

Answer:

$135,700

Explanation:

The Accounts Receivable are shown in the Balance Sheet at the amount that is expected to be collected by the entity from its customers - thus providing for a Faith Representation of Financial Statements. This will be after the Allowance for Doubtful Accounts and any amounts Written Off are Deducted.

Accounts Receivable Balance = $150,000 - $13,000 - $1,300

                                                  = $135,700