Lithotech, Inc had net sales in 2016 of $700,000. At December 31, 2016, before adjusting entries, the balances in selected accounts were: accounts receivable $125,000 debit, and allowance for doubtful accounts $1,200 debit. Lithotech estimates that 2% of its net sales will prove to be uncollectible. What is the cash realizable value of the receivables reported on the statement of financial
position at December 31, 2016?
A) $109,800
B) $111,000
C) $112,200
D) $122,500
Answer: B
Business
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