Please provide the step by step working too thanks Big A\'s Auto Service was sta

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Please provide the step by step working too thanks

Big A's Auto Service was started on January 1, 2014. The company experienced the following events during its first two years of operation. Events affecting 2014 Provided $30,000 of repair services on account Collected $25,000 cash from accounts receivables The company estimates that 7 percent of ending accounts receivable will not be collected. Events affecting 2015 Wrote off a $300 account receivable that was determined to be uncollectible provided $35,000 of repair services on account Collected $31,000 cash from accounts receivables Provided $20,000 of repair services on account The company estimates that 7 percent of ending accounts receivable will not be collected. What is Net Realizable value at the end of 2015?

Explanation / Answer

Answer c. $26691 Net Relizabel Value at the end of 2015 Balance of Accounts Receivable $28,700 Less: Provision for D Debts $2,009 Net relizable Value $26,691 Accounts Receivables A/c Date Particulars Amount Date Particulars Amount 2014 To Repair Services $30,000 2014 By Cash A/c $25,000 2014 By Balance C/F $5,000 (Bal. Fig.) $30,000 $30,000 2015 To bal B/f $5,000 2015 By Cash A/c $31,000 2015 To Repair Services $35,000 2015 By Bad debts $300 2015 To Repair Services $20,000 2015 By Balance C/f $28,700 $60,000 $60,000 Provision for Doubtful Debts Date Particulars Amount Date Particulars Amount 2014 To Bal C/f $350 2014 To Profit & Loss A/c $350 $350 $350 2015 By Balance C/f $2,009 2015 By Bal B/f $350 2015 By Profit & Loss A/c $1,659 $2,009 $2,009

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