The following information is from the records of Pangolin Camera Shop: Accounts Receivable, December 31, 2017 $20,000(debit) Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,000 (debit) Net credit sales for 2017 91,000 Accounts written off as uncollectible during 2017 450 Bad debts expense is estimated by the agingminus−ofminus−accountsminus−receivables method. Management estimates that $3,150 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts

. A. $15,850 B. $16,850 C. $15,400 D. $ $17,850

The answer it's $16,850 because the balance of accounts receivable at December 31, 2017 it's $20,000 (net of the total movements occured during 2017) and the total balance of allowance for bad debts it's estimated to be $3,150, so the Net Accounts Receivable is $20,000 - $3,150 = $16,850

Pangolin Camera Shop: Accounts Receivable, December 31, 2017 $20,000(debit)

Dr Accounts receivable $ 20,000

Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,000 (debit)

Dr Allowance for Uncollectible Accounts $ 1,000

Net credit sales for 2017 91,000

Dr Accounts receivable $ 91,000

Cr Sales $ 91,000

Accounts written off as uncollectible during 2017 450

Dr Allowance for Uncollectible Accounts $ 450

Cr Accounts receivable $ 450

Management estimates that $3,150 of accounts receivable will be uncollectible

Dr Bad Debt Expense $ 3,150

Cr Allowance for Uncollectible Accounts $ 3,150

Calculate the amount of net accounts receivable after the adjustment for bad debts

Dr Accounts receivable $ 16,850