Park Services began using the allowance method in 2024. On January 1, 2024, Park had accounts receivable of $5,000 and no allowance for doubtful accounts. During 2024, Park provided $40,000 of services on account and collected $35,000 in cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. What is the net realizable value of Park's accounts receivable as of December 31, 2024? a. $10,000 b. $8,800 c. $9,200 d. $9,800

Park Services began using the allowance method in 2024. On January 1, 2024, Park had accounts receivable of $5,000 and no allowance for doubtful accounts. During 2024, Park provided $40,000 of services on account and collected $35,000 in cash from accounts receivable. Uncollectible accounts are estimated to be 3% of sales on account. What is the net realizable value of Park's accounts receivable as of December 31, 2024? a. $10,000 b. $8,800 c. $9,200 d. $9,800

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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