Problem:
I want assistance in calculating the net realizable value of A/R at 12/31/09, as well as preparing a balance sheet for the company.
Current assets section of balance sheet for Company B:
A/R - $63,000
Less: Allowance for bad debts - (9,000) $54,000
The company's accounting records revealed the following information for the year ended December 31, 2009:
Sales (on all accounts) ..................................... $480,000
Cash collections from customers........................... $435,000
Accounts written off.......................................... $10,500
Bad debts expense (accrued at 12/31/09)...................$16,500