Calculate the net realizable value of accounts receivable

Reference no: EM13599990

A portion of the current assets section of the December 31, 2010, balance sheet for Gibbs Co. is presented here:
Accounts receivable $ 24,100
Less: Allowance for bad debts (2,300) $ 21,800

The company's accounting records revealed the following information for the year ended December 31, 2011:

Sales (all on account) $ 163,500
Cash collections from customers 139,000
Accounts written off 2,800
Bad debts expense (accrued at 12/31/11) 5,400

Required:
Calculate the net realizable value of accounts receivable at December 31, 2011, and allowance for bad debts for Gibbs Co., as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

At December 31, 2011:
Accounts receivable $
Less: Allowance for bad debts $ $

Reference no: EM13599990

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