Accounts receivable before the allowance


At the close of its first year of operations, December 31, 2007, Linn Company had accounts receivable of $540,000, after deducting the related allowance for doubtful accounts. During 2007, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 31, 2007, as accounts receivable before the allowance for doubtful accounts?

a. $670,000

b. $590,000

c. $490,000

d. $440,000

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Accounting Basics: Accounts receivable before the allowance
Reference No:- TGS095133

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