Question

Tudor Corp. has an ending balance in the accounts receivable account of $20,000. Tudor recorded bad debt expense of $1,000. Tudor has an ending balance in the allowance for uncollectible accounts of $2,000. What is the net accounts receivable balance?

a. $20,000
b. $18,000
c. $17,000
d. $19,000

Answer 1

The net accounts receivable balance for Tudor Corp. is $18,000, found by subtracting the allowance for uncollectible accounts from the accounts receivable balance. Option B is correct.

Step-by-step explanation:

The net accounts receivable balance is calculated by deducting the ending balance of the allowance for uncollectible accounts from the ending balance in accounts receivable.

Tudor Corp. has an ending balance in accounts receivable of $20,000 and an allowance for uncollectible accounts of $2,000. Therefore, the net accounts receivable balance would be $18,000, which is calculated as $20,000 - $2,000.

To find the net accounts receivable balance, we need to subtract the allowance for uncollectible accounts from the ending balance in the accounts receivable account.

Net Accounts Receivable = Ending Accounts Receivable Balance - Allowance for Uncollectible Accounts

Net Accounts Receivable = $20,000 - $2,000 = $18,000

Therefore, the net accounts receivable balance is $18,000.