The following information was presented in the balance sheet of Gloria Company a

Question

The following information was presented in the balance sheet of Gloria Company as of December 31, 2014:

Trade accounts receivable, net of allowance for uncollectibles of $100,000 $1,600,000

Which one of the following statements is true?

a. Gloria expects that $1,700,000 of accounts receivable will be collected after year end. b. The net realizable value of Gloria's accounts receivable is $1,600,000. c. The balance in the Accounts Receivable account in Gloria's general ledger is $1,600,000. d. Gloria expects to collect only $1,500,000 from its customers.

Explanation / Answer

Details Amt $ Accounts Receivable Balance Dec 31.2014.              1,700,000 Less : Allowance for Uncollectibles               (100,000) Net Realizable value of Accounts Receivable Dec 31.2014.              1,600,000 So Gloria Expects that net collectible amount is $1,600,000 So Net Realizable value of Accounts Receivable on Dec 31.2014. is $1,600,000 Option b is correct .

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