Park Company began using the allowance method in 2024. On January 1, 2024, Park had a $4,500 balance in the accounts receivables account and a zero balance in the allowance for doubtful accounts account. During 2024, Park provided $32,000 of service on account. The company collected $28,000 cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. The net realizable value of Park's accounts receivable as of December 31, 2024, was: A. $8,500 B. $7,540 C. $4,000 D. $960

Park Company began using the allowance method in 2024. On January 1, 2024, Park had a $4,500 balance in the accounts receivables account and a zero balance in the allowance for doubtful accounts account. During 2024, Park provided $32,000 of service on account. The company collected $28,000 cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. The net realizable value of Park's accounts receivable as of December 31, 2024, was: A. $8,500 B. $7,540 C. $4,000 D. $960

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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