At December 31, 2024, Bacardi Company had $500,000 in Accounts Receivable and $20,000 in the Allowance for Doubtful Accounts.  All sales made by Bacardi are on account.  During 2025, Bacardi recorded the following transactions: $2,000,000 in sales;  $2,100,000 collected from customers;  $27,000 in accounts were written off as uncollectible; and bad debt expense for the year ended December 31, 2025 was $31,000.  When preparing their December 31, 2025 balance sheet, the amount Bacardi Company would report as net accounts receivable is: $373,000 $400,000 $349,000 $369,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

At December 31, 2024, Bacardi Company had $500,000 in Accounts Receivable and
$20,000 in the Allowance for Doubtful Accounts.  All sales made by Bacardi are on
account.  During 2025, Bacardi recorded the following transactions: $2,000,000 in
sales;  $2,100,000 collected from customers;  $27,000 in accounts were written off as
uncollectible; and bad debt expense for the year ended December 31, 2025 was
$31,000.  When preparing their December 31, 2025 balance sheet, the amount
Bacardi Company would report as net accounts receivable is:

$373,000

$400,000

$349,000

$369,000

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education