A firm has accounts receivable of $100,000 and allowance for doubtful accounts of $15,000.How will this be reported on the financial statements?
A)$85,000 asset
B)$85,000 revenue
C)$100,000 asset and $15,000 liability
D)revenue of $100,000 and expense of $15,000

Question

Quizplus · Accepted Answer

The accounts receivable of $100,000 minus the allowance for doubtful accounts of $15,000 results in a net accounts receivable of $85,000, which is reported as an asset on the balance sheet.

A Firm Has Accounts Receivable of $100,000 and Allowance for Doubtful