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Panamerican Foods has Accounts Receivable of $230,000 and an Allowance for Doubtful Accounts of $13,000. If...

Panamerican Foods has Accounts Receivable of $230,000 and an Allowance for Doubtful Accounts of $13,000. If it writes-off a customer account balance of $1,300, what is the amount of its net accounts receivable? Multiple Choice $217,000 None of the other answers are correct. $215,700 $228,700 $230,000

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Expert Solution

Correct Option $217000
Accounts Receivable Allowance for Doubtful accounts Net Receivables
Beginning Balance                            230,000                                    13,000             217,000
Less: write Off                              (1,300)                                    (1,300)                         -  
Ending balance                            228,700                                    11,700             217,000
Note: value of net receivable never gets affected by written off of accounts receivable. Because in write off both the accounts gets decreased by same amount hence no effect on net receivable.

ekkarill92 answered 2 years ago
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