A Company Reports Net Accounts Receivable of $150,000 on Its

question 133

Multiple Choice

A company reports net accounts receivable of $150,000 on its December 31, 2015 balance sheet. The Allowance for Bad Debts has a credit balance of $15,000. What is the balance in Accounts Receivable?

• A)$155,000
• B)$150,000
• C)$165,000
• D)$135,000

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Definitions:

Merchandise

Goods that are bought and sold in the course of business, typically in a retail or wholesale environment.

Inventory

The total amount of goods and materials a business has in stock, either for sale or used in production.

Purchase Price

The amount of money paid to buy goods or services.

Merchandise Inventory

Goods or products that a retailer or wholesaler has purchased and intends to sell to customers.