Respuesta :
Answer:
The correct answer is $262,000
Explanation:
Net Accounts receivable alludes to the sum that the organization will really get from its clients when they would make the installment for credit deals made to them.
Allowance for Doubtful Accounts is the sum the organization expects it won't get from its clients and subsequently it would not bring about assortment from credit deals.
Thus,
Net Accounts receivable = Gross Accounts receivable - Allowance for Doubtful Accounts
Net Accounts receivable = $280,000 - $18,000
Net Accounts receivable = $262,000
Note: The Amount discounted will have no effect on the Net Accounts receivable as it is now included for Allowance for Doubtful Accounts and in this way no treatment of $1,800 is required
Answer:
$262,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
The net receivable is the difference between the accounts receivable and the allowance for doubtful debt balance. The amount written off would be deducted from the two balances as expressed.
Allowance balance = $18,000 - $1,800
= $16,200
Accounts receivable balance = $280,000 - $1,800
= $278,200
Net accounts receivable = $278,200 - $16,200
= $262,000
