After aging the accounts receivable, it is estimated that $420 will not be collected and the allowance account has an existing debit balance of $100. If accounts receivable is $145,000, the net receivables would be
A) $145,000.
B) $144,580.
C) $144,900.
D) $144,480.

Question

Quizplus · Accepted Answer

To calculate net receivables, we need to subtract the amount estimated to be uncollectible and the existing debit balance in the allowance account from the total accounts receivable.

Net Receivables = Accounts Receivable - (Estimated Uncollectible + Allowance for Doubtful Accounts)

Net Receivables = $145,000 - ($420 + $100) = $144,580

Therefore, the answer is B) $144,580.

After Aging the Accounts Receivable, It Is Estimated That $420