At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $50,000 and the allowance for uncollectible accounts is estimated at 16% of gross receivables?
A) $6,300
B) $42,000
C) $50,000
D) $28,700

Question

Quizplus · Accepted Answer

The accounts receivable will be reported at $42,000 on the balance sheet. This is calculated by subtracting the allowance for uncollectible accounts ($8,000, which is 16% of $50,000) from the gross receivable balance ($50,000), resulting in $42,000.

At What Amount Will Accounts Receivable Be Reported on the Balance