Question

At what amount will accounts receivable be reported on the balance sheet if the gross receivable balance is $100,000 and the allowance for uncollectible accounts is estimated at 6% of gross receivables

Answer 1

Answer:

The account receivable is $94,000

Explanation:

The computation of the account receivable is shown below:

= Gross receivable balance - allowance amount

= $100,000 - $100,000 × 6%

= $100,000 - $6,000

= $94,000

Hence, the account receivable is $94,000 and the same is to be reported on the asset side of the balance sheet

We simply applied the above formula