Which one of the following is the correct presentation of Accounts Receivable and its contra account on the balance sheet? Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) Less: Allowance for Doubtful Accounts (2,000) $623,000 Accounts Receivable $642,000 Plus: Allowance for Doubtful Accounts 2,000 $644,000 Accounts Receivable $642,000 Less: Allowance for Doubtful Accounts (2,000) $640,000 Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) $625,000

Question

Business

Terrance Mcbride

2 August, 09:27

Which one of the following is the correct presentation of Accounts Receivable and its contra account on the balance sheet? Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) Less: Allowance for Doubtful Accounts (2,000) $623,000 Accounts Receivable $642,000 Plus: Allowance for Doubtful Accounts 2,000 $644,000 Accounts Receivable $642,000 Less: Allowance for Doubtful Accounts (2,000) $640,000 Accounts Receivable $642,000 Less: Bad Debt Expense (17,000) $625,000

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Kai Nolan · Answer 1

Accounts Receivable $642,000 Less: Allowance for Doubtful Accounts (2,000) $640,000

Explanation:

The contra asset account will be deducted from Accounts Receivable resulting in the net cash realizable value of $640,000.

=$642,000 - $2,000 = $640,000