Aspen Corporation Data for Aspen Corporation for the year ended December 31, 2012, are presented below. Credit sales $2,100,000 Sales returns 150,000 Gross accounts receivable (December 31, 2012 ) 420,000 Allowance for bad debts (Before adjustment at December 31, 2012 ) 25,000 Estimated amount of uncollected accounts based on an aging analysis 75,000 Refer to the information provided for Aspen
Corporation. If Aspen uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
A) $343,000
B) $345,000
C) $420,000
D) $395,000
B
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