Legacy Company uses the aging of accounts re 31 and gathered the following information:
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.
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Legacy Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on De
31 and gathered the following information:
15
Accounts Receivable
Unadjusted Credit balance in Allowance for Doubtful Accounts
Estimated Uncollectible Accounts Receivable
$420,000
nts
16,000
23,200
S o:08:02
What is the amount of Accounts Receivable, Net that will be reported on the balance sheet at December 31?
Multiple Choice
$396,800
$404,000
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