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Analysis of accounts receivable and allowance for bad debts-determine ending balances A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here: Accounts receivable .. Less: Allowance for bad debts $425,000 Sales (all on account) Cash collections from customers. Accounts written off Bad debts expense (accrued at 12/31/20).. (18,000) $407,000 The company's accounting records revealed the following information for the year ended December 31, 2020: ado $2,600,000 2,375,000 30,000 41,000 Required: Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

Analysis of accounts receivable and allowance for bad debts-determine ending balances A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. is presented here: The company's accounting records revealed the following information for the year ended December 31, 2020: Required: Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

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