Multiple Choice
In the allowance method for uncollectible accounts, what does a debit balance in the Allowance for Doubtful Accounts most likely indicate at period-end (before any adjusting entry)?
7. Receivables and Investments
Net Accounts Receivable: Allowance for Doubtful Accounts
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A company reports Accounts Receivable of \$50,000 and an Allowance for Doubtful Accounts of \$2,000. What is the net accounts receivable reported on the balance sheet?
A
\$50,000
B
\$52,000
C
\$48,000
D
\$2,000
Verified step by step guidance1
Understand the concept: Net Accounts Receivable is calculated by subtracting the Allowance for Doubtful Accounts from the total Accounts Receivable. This represents the amount the company expects to collect.
Identify the given values: Accounts Receivable is \$50,000, and the Allowance for Doubtful Accounts is \$2,000.
Set up the formula for Net Accounts Receivable: Net Accounts Receivable = Accounts Receivable - Allowance for Doubtful Accounts.
Substitute the given values into the formula: Net Accounts Receivable = \$50,000 - \$2,000.
Perform the subtraction to determine the Net Accounts Receivable, which will be reported on the balance sheet.
8:06mWatch next
Master Net Accounts Receivable: Allowance for Doubtful Accounts with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Net Accounts Receivable: Allowance for Doubtful Accounts practice set
Problem sets built by lead tutorsExpert video explanations