The following data concerns Wang Corporation for 2016: $\begin{array}{lr}
\text { Credit sales during the year } & \$ 1,600,000 \
\text { Accounts Receivable-December } 31,2016 & 235,000 \
\text { Allowance for Doubtful Accounts-December } 31,2016 & 18,000 \
\text { Bad debt expense for the year } & 11,000
\end{array}$ ? 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

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated as Accounts Receivable minus Allowance for Doubtful Accounts. So, $235,000 - $18,000 = $217,000.

The Following Data Concerns Wang Corporation for 2016 ? What Amount Will Wang Show on Its Year-End Balance