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At what amount will the receivable be shown in the financial statements at 31 December 20X6?

$149,000
$147,000
$147,059
$148,059

Answer :

When preparing financial statements, accounts receivable is typically reported at its net realizable value. This value is what the company expects to collect on the receivable. Factors that could affect this value include allowances for doubtful accounts or discounts offered. Without specific details on these factors in the given options, we can select an answer assuming typical straightforward accounting treatment.

Here's a step-by-step explanation of how you might determine the correct amount:

  1. Initial Value of Receivable: The initial value or the invoiced amount of receivable is given as one of the options, which needs to be compared against other considerations.

  2. Allowance for Doubtful Accounts: Companies typically estimate uncollectible accounts to protect against potential losses. This might be given as a percentage or a specific amount deducted from the initial receivable amount.

  3. Discounts: Any sales discounts offered or expected should also be accounted for in the net realizable value.

Although specific allowances or discounts aren't provided directly in your question, the context implies that either direct calculation or estimation might have led to adjusted figures. Given typical accounting practices, the closest option for a simple case without expressed adjustments like allowances for doubtful accounts would be $149,000 as it might represent the full expected collection on account.

Therefore, without additional specific data adjustments, the most straightforward answer available from the options is $149,000. However, if any discounts or allowances were provided or need to be considered and reduce the value, similar calculations would re-evaluate these specifics.

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