On December 31, 2021, the end of Adie, Miles, & Auer Used Cars' first year of operations, the accounts receivable was $107,200. The company estimates that $2,400 of the year-end receivables will not be collected. Accounts receivable in the 2021 balance sheet will be valued at:
107,200.
$109,600.
$104,800.
$2,400.
Account receivable balance on December 31, 2021 = $107,200
$2,400 of the account receivable are estimated to be uncollectible.
Net accounts receivable to be reported in 2021 Balance Sheet = Accounts receivable - Estimated Uncollectible accounts receivable
= 107,200 - 2,400
= $104,800
Correct option is (c)
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On December 31, 2021, the end of Adie, Miles, & Auer Used Cars' first year of...