Indus Corporation uses an income statement approach to estimate credit losses. Its gross Accounts Receivable of Rs 5,000,000 at the beginning of the priod had a net realizable value of Rs 4,925,000. During the period, the company wrote off actual accounts receivable of Rs 100,000 and collected Rs 7,835,000 from credit customers. Credit sales for the year amounted to Rs 9,000,000. Of its credit sales, 1 percent was estimated to eventually be uncollectible. Determine the net realizable value of the company’s accounts receivable at the end of the period.
Indus Corporation uses an income statement approach to estimate credit losses. Its gross Accounts Receivable of Rs 5,000,000 at the beginning of the priod had a net realizable value of Rs 4,925,000. During the period, the company wrote off actual accounts receivable of Rs 100,000 and collected Rs 7,835,000 from credit customers. Credit sales for the year amounted to Rs 9,000,000. Of its credit sales, 1 percent was estimated to eventually be uncollectible. Determine the net realizable value of the company’s accounts receivable at the end of the period.
Chapter1: Financial Statements And Business Decisions
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Indus Corporation uses an income statement approach to estimate credit losses. Its gross
During the period, the company wrote off actual accounts receivable of Rs 100,000 and collected Rs 7,835,000 from credit customers. Credit sales for the year amounted to Rs 9,000,000. Of its credit sales, 1 percent was estimated to eventually be uncollectible.
Determine the net realizable value of the company’s accounts receivable at the end of the period.
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