Lerner Company uses the net credit sales method to estimate bad debt expense and has estimated that 4% of its credit sales will be uncollectible. During 2026, Lerner reported net credit sales of $363,000 and collected $384,000 cash from its credit customers. Also during 2026, Lerner wrote off $17,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $11,000 (note that the $11,000 recovery is not included in the $384, 000 of cash collections given previously). At January 1, 2026, Lerner Company reported accounts receivable of $109,000 and had an allowance for doubtful accounts with a $23,000 credit balance. Calculate the net realizable value of Lerner Company's accounts receivable at December 31, 2026.
Lerner Company uses the net credit sales method to estimate bad debt expense and has estimated that 4% of its credit sales will be uncollectible. During 2026, Lerner reported net credit sales of $363,000 and collected $384,000 cash from its credit customers. Also during 2026, Lerner wrote off $17,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $11,000 (note that the $11,000 recovery is not included in the $384, 000 of cash collections given previously). At January 1, 2026, Lerner Company reported accounts receivable of $109,000 and had an allowance for doubtful accounts with a $23,000 credit balance. Calculate the net realizable value of Lerner Company's accounts receivable at December 31, 2026.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lerner Company uses the net credit sales method to estimate bad debt expense and has estimated that 4% of its credit sales will be uncollectible. During 2026,
Lerner reported net credit sales of $363,000 and collected $384, 000 cash from its credit customers. Also during 2026, Lerner wrote off $17,000 of accounts
receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $11,000 (note that the $11,000 recovery is not
included in the $384, 000 of cash collections given previously). At January 1, 2026, Lerner Company reported accounts receivable of $109,000 and had an
allowance for doubtful accounts with a $23,000 credit balance. Calculate the net realizable value of Lerner Company's accounts receivable at December
31, 2026.
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