A Company Reports Accounts Receivable on the Balance Sheet at a Net

question 121

Multiple Choice

A company reports accounts receivable on the balance sheet at a net realizable value of $586,592. If their gross receivables were $612,854, then the balance in the Allowance for Uncollectible Accounts is:

• A) $26,262.
• B) $38,745.
• C) $73,812.
• D) cannot be determined from the facts.

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Definitions:

Credit

An arrangement where goods, services, or money is received in exchange for a promise to pay back a specific amount in the future.

Post Reference Notation

An alphanumeric or numeric code used in accounting to indicate a journal entry has been posted to a particular ledger account.

Journal

A chronological record of all financial transactions, used to transfer information to the general ledger in the accounting process.

Journal Entries

Records of financial transactions in the accounting system, ensuring that the debit and credit balance.