Calculate the net realizable value of abc company account

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On January 1, 2019, ABC Company had accounts receivable of $89,000 and an allowance for doubtful accounts with a credit balance of $17,000. During 2019, ABC Company reported sales (all on account) of $850,000; collected $652,000 cash from its credit customers; and wrote-off $14,000 of accounts receivable as being uncollectible. ABC Company uses the net credit sales method to estimate bad debt expense and estimated bad debt expense for 2019 as 4% of net credit sales.

Question 1: Calculate the net realizable value of ABC Company's accounts receivable at December 31, 2019.

Reference no: EM132557276

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