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

Question

Quizplus · Accepted Answer

The net accounts receivable is calculated as Accounts Receivable minus the Allowance for Bad Debts. Therefore, the balance in Accounts Receivable is $150,000 (net) + $15,000 (allowance) = $165,000.

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