Question

At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $50,000 and the allowance for uncollectible accounts is estimated at 16% of gross receivables

Answer 1

Answer: $42000

Step-by-step explanation:

Based on the scenario in the question, the amount for accounts receivable that will be reported on the balance sheet will be:

Gross receivable balance = $50,000

Less: Allowance for uncollectible account = 16% × $50,000 = 0.16 × $50000 = $8000

Met account receivable = $50,000 - $8,000 = $42,000