Question 5 Watrous company uses the net credit sales method to estimate bad debt expense...
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Question 5 Watrous company uses the net credit sales method to estimate bad debt expense and has estimated that 4% of its credit sales wi11 be uncollectible. During 2028, watrous reported net credit sales of $480,000 and collected a total of $430,000 cash from its credit customers. Also during 2028, Watrous wrote off $22,000 of accounts receivable as being uncollectible and recorded recoveries of previously written off accounts receivable totaling $13,000 (note that the $13,000 recovery is not included in the $430,000 of cash collections given previously). At January 1, 2028, Watrous Company reported accounts receivable of $176,000 and had an a1lowance for doubtful accounts with a $28,000 credit balance. Calculate the net realizable value of Watrous Company's accounts receivable at December 31, 2028
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