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glendagill2003
Nov 18, 2009, 11:52 AM
At the beginning of 2008 Darcy's Floor Coverings had the following account balances: Accounts Receivable $325,000 and Allowance for rUncollectible Accounts @7,500 (credit). During the year credit sales were @825,000 sales returns and allowances were $31,750 and $10,000 of specific customer accounts were written off. Collections on accounts receivable were $622,000. At year-end, Darcy's Floor Covering estimated that 5% of net sales were uncollectiable.

What is the net realizable value of Accounts Receivable at year-end and what amount of bad debts expense will appear on the income statement for 2008?

morgaine300
Nov 18, 2009, 07:15 PM
Please see the guidelines for posting homework problems:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

There have been numerous questions about bad debt -- you can search this and the homework forum for some detailed info on this subject.