The net realizable value of Morgan's receivables at the end of 2011 was
A)$24,150.
B)$24,960.
C)$29,850.
D)$27,000.

Question

Quizplus · Accepted Answer

$0 beginning balance + $95,000 revenue on account - $68,000 collections = $27,000 ending accounts receivable balance; $0 beginning balance + $2,850 uncollectible accounts expense - $0 write-offs = $2,850 ending allowance for doubtful accounts balance; $27,000 - $2,850 = $24,150 net realizable value

The Net Realizable Value of Morgan's Receivables at the End