The Following Data Concern Wang Corporation for 2017: What Amount Will Wang Show on Its Year-End Balance Sheet

question 102

Multiple Choice

The following data concern Wang Corporation for 2017: ?
$$\begin{array} { l r } \text { Credit sales during the year } & \$ 1,600,000 \\\text { Accounts receivable-December } 31,2017 & 235,000 \\\text { Allowance for doubtful accounts-December 31,2017 } & 18,000 \\\text { Bad debts expense for the year } & 11,000\end{array}$$ What amount will Wang show on its year-end balance sheet for the net realizable value of its accounts receivable?

• A)$253,000
• B)$235,000
• C)$224,000
• D)$217,000

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Definitions:

Supplies

Items and materials used in the everyday operations of a business, often consumable and requiring regular replenishment.

Accounts Receivable

The amount clients owe a company for goods or services that have been delivered but remain unpaid.

Accounts Payable

Short-term liabilities a company owes to its creditors for goods and services purchased on credit.

Correcting Entry

An accounting entry made to amend errors found in the financial statements after they have been finalized.