Question

2. Refer to the above data. VIP uses the balance sheet approach in estimating uncollectible accounts expense, and aging the accounts receivable indicates the estimated uncollectible portion to be $6,201. The net realizable value of VIP's accounts receivable in the January 31 balance sheet is: A) $239,743. B) $245,944. C) $232,808. D) $233,542.

Answer 1

The question is not complete where following data is missing;

Sales Cr.$400,000

Accounts Receivable Dr.$240,000

Allowance for un-collectibles Cr.$700

Step-by-step explanation:

The answer will be for NRV of A/R=$240,000-$6,201=$233,799 which is close to option D.$233,542 therefore option D is the answer.