Question

A company reports net accounts receivable of​ $152,000 on its december​ 31, 2019 balance sheet. the allowance for bad debts has a credit balance of​ $19,000. what is the balance of accounts​ receivable?

Answer 1

Since there is a credit balance of 19,000 in the allowance for bad debt, the balance of accounts receivable will be = 152,000+19,000 = 171,000. (We add because the balance on allowance of bad debt was a "Credit")

The balance of accounts​ receivable = $171,000

Answer 2

The balance of accounts​ receivable is $171,000.

Step-by-step explanation:

The balance of account receiveable is the balance of money that a firm can earn due to services not yet delivered, or delivered but not paid by customers(in this case, credit for bad debits). This value is the sum of the net accounts receiveable and the credit for the bad debits.

In this problem, we have that:

net accounts receivable of​ $152,000;

allowance for bad debts has a credit balance of​ $19,000.

So the balance of accounts​ receivable is $152,000+$19,000 = $171,000.