After aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400. If the accounts receivable total $130,000, the net receivables would be
A) $128,800.
B) $129,600.
C) $128,400.
D) $128,000.

Question

Quizplus · Accepted Answer

Net receivables = Accounts receivable - Allowance for doubtful accounts= $130,000 - ($1,200 - $400)= $130,000 - $800= $129,200

After Aging the Accounts Receivable, It Is Estimated That $1,200