Collision Corporation Data for Collision Corporation for the year ended December 31, 2012, are presented below. Credit Sales $2,000,000 Sales returns and allowances 40,000 Accounts receivable (December 31, 2012 ) 610,000 Allowance for bad debts (Before adjustment at December 31, 2012 ) 15,000 Estimated amount of uncollected accounts based on aging analysis 55,000 Refer to the information provided
for Collision Corporation. If Collision uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
A) $610,000
B) $555,000
C) $595,000
D) $570,000
B
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