question 3 (2.5 points) after aging the accounts receivable, it is estimated that $1,200 will not be…

question 3 (2.5 points) after aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400. if the accounts receivable total $130,000, the net receivables would be: $128,800 $129,600 $128,400 $128,000

question 3 (2.5 points) after aging the accounts receivable, it is estimated that $1,200 will not be collected and the allowance account has an existing credit balance of $400. if the accounts receivable total $130,000, the net receivables would be: $128,800 $129,600 $128,400 $128,000

Answer

Explanation:

Step1: Determine required allowance

The estimated uncollectible amount is $1,200 and the existing credit - balance in the allowance account is $400. So, the additional allowance needed is $1,200 - $400=$800.

Step2: Calculate net receivables

Net receivables = Total accounts receivable - End - of - period allowance balance. The end - of - period allowance balance is $1,200. Total accounts receivable is $130,000. So, net receivables = $130,000−$1,200 = $128,800.

Answer:

$128,800