Question

legacy company uses the aging of accounts receivable method. The company performed and aging of accounts receivable on December 31. What is the amount of accounts receivable, net

Answer 1

Answer: $504,000

Step-by-step explanation:

Net Accounts Receivables = Accounts Receivables - Allowance for doubtful accounts ending credit balance

Allowance for doubtful accounts ending credit balance = Estimated Uncollectible Accounts receivable

Net Accounts Receivables = 565,000 - 61,000

= $504,000