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problem 1: Alpha Gym allows services to be on account to loyal customers. The unadjusted Accounts Receivable at the end of the year amounts to ?120,000 and unadjusted Allowance for doubtful accounts amounts to ? 5,000. Service revenue for the year amounted to ? 1,250,000. If Alpha Gym estimates 2% of revenue as bad debts, what is the net realizable value of the receivables which should be presented in the statement of financial position?
A. ? 120,000B. ? 90,000C. ? 95,000D. ? 115,000
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