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Financial Accounting

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Moderate

Net A/R: Allowance with Beginning Credit Balance

FINACT-6MGH4I

Jazz Company has a \$200 credit balance at 12/31/17 in the Allowance for Doubtful Accounts before year-end adjusting entries have been made. After analyzing the Accounts Receivable account, which has a balance of \$30,000 at year-end, it has been determined that two customers have account balances that will more than likely be uncollectable because they are more than 180 days past due. Smith and Associates owes Jazz Company \$2,000 on an invoice dated 5/31/17, and Brown Corporation owes \$1,800 related to an invoice dated 1/20/17.

Net Accounts Receivable will be reported at what amount on the Balance Sheet at year-end if Jazz Company records bad debt expense using the balance sheet method?

A

\$29,800

B

\$26,200

C

\$26,000

D

\$30,000