A company reports net accounts receivable of $152,000 on its 31 December 2016 balance sheet.The Allowance for doubtful debts has a credit balance of $20,000.What is the balance in Accounts receivable?
A)$157,000
B)$172,000
C)$152,000
D)$132,000

Question

Quizplus · Accepted Answer

The net accounts receivable is calculated as the gross accounts receivable minus the allowance for doubtful debts. Therefore, if the net accounts receivable is $152,000 and the allowance for doubtful debts is $20,000, the gross accounts receivable (balance in Accounts receivable) would be $152,000 + $20,000 = $172,000.

A Company Reports Net Accounts Receivable of $152,000 on Its