An analysis and aging of the accounts receivable of Crane Company at December 31 revealed the following data: Accounts Receivable $904000 Allowance for Doubtful Accounts per books before adjustment (Cr.) 50400 Amounts expected to become uncollectible 56000 The cash realizable value of the accounts receivable at December 31, after adjustment, is: $797600. $848000. $853600. $898400.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
An analysis and aging of the
| Accounts Receivable | $904000 |
| Allowance for Doubtful Accounts per books | |
| before adjustment (Cr.) | 50400 |
| Amounts expected to become uncollectible | 56000 |
The cash realizable value of the accounts receivable at December 31, after adjustment, is:
|
|
$797600. |
|
|
$848000. |
|
|
$853600. |
|
|
$898400. |
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