Homework Help is Here – Start Your Trial Now!
Business
Accounting
Watrous 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 2028, Watrous reported net credit sales of $480,000 and collected a total of $430,000 cash from its credit customers. Also during 2028, Watrous wrote off $22,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $13,000 (note that the $13,000 recovery is not included in the $430,000 of cash collections given previously). At January 1, 2028, Watrous Company reported accounts receivable of $176,000 and had an allowance for doubtful accounts with a $28,000 credit balance. Calculate the net realizable value of Watrous Company's accounts receivable at December 31, 2028.

Watrous 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 2028, Watrous reported net credit sales of $480,000 and collected a total of $430,000 cash from its credit customers. Also during 2028, Watrous wrote off $22,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $13,000 (note that the $13,000 recovery is not included in the $430,000 of cash collections given previously). At January 1, 2028, Watrous Company reported accounts receivable of $176,000 and had an allowance for doubtful accounts with a $28,000 credit balance. Calculate the net realizable value of Watrous Company's accounts receivable at December 31, 2028.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please don't give image based answer..thanku
Question 5 Watrous 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 2028, Watrous reported net credit sales of $480,000 and collected a total of $430,000 cash from its credit customers. Also during 2028, Watrous wrote off $22,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $13,000 (note that the $13,000 recovery is not included in the $430,000 of cash collections given previously). At January 1, 2028, Watrous Company reported accounts receivable of $176,000 and had an allowance for doubtful accounts with a $28,000 credit balance. Calculate the net realizable value of Watrous Company's accounts receivable at December 31, 2028.
Transcribed Image Text:Question 5 Watrous 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 2028, Watrous reported net credit sales of $480,000 and collected a total of $430,000 cash from its credit customers. Also during 2028, Watrous wrote off $22,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $13,000 (note that the $13,000 recovery is not included in the $430,000 of cash collections given previously). At January 1, 2028, Watrous Company reported accounts receivable of $176,000 and had an allowance for doubtful accounts with a $28,000 credit balance. Calculate the net realizable value of Watrous Company's accounts receivable at December 31, 2028.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS