At the Close of Its Third Year of Operations,on December

question 13

Essay

At the close of its third year of operations,on December 31,2014,the Runner Company had receivables of $350,000,which were net of the related allowance for doubtful accounts.During 2014,the company had charges to bad debt expense of $50,000 and wrote off,as uncollectible,accounts receivable of $22,000.Runner had a balance in its allowance for uncollectible accounts at December 31,2013 of $8,100.
Required:
What should the company report on its balance sheet at December 31,2014,as accounts receivable before the allowance for uncollectible accounts?

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Cash Flows

The movement of money into and out of a business, project, or investment, critical for assessing financial health.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period.

Living Standards

The level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or geographic area.