Question

On December 31, 2018, the end of Larry's Used Cars' first year of operations, the accounts receivable was $53,600. The company estimates that $1,200 of the year-end receivables will not be collected. Accounts receivable in the 2018 balance sheet will be valued at:

a. $53,600.
b. $54,800.
c. $52,400.
d. $1,200.

Answer 1

Option (C) is correct.

Step-by-step explanation:

Accounts Receivable as on Dec 31, 2018 = $53,600

Uncollected Receivables year end = ($1,200)

Net Accounts Receivable in the 2018 balance sheet will be valued at:

= Accounts Receivable as on Dec 31, 2018 - Uncollected Receivables year end

= $53,600 - $$1,200

= $52,400

Therefore, accounts receivable in the balance sheet of 2018 is $52,400.