Question

Question 3
A company reports Accounts Receivable of $5,000 on its balance sheet at 12/31/2012. Its Allowance for Doubtful Accounts on 12/31/2012 is $500. What is the total amount owed by customers at 12/31/2012?


$500



$0



$5,000



$4,500



$5,500


1 point
4.
Question 4
A co

Answer 1

To determine the total amount owed by customers at 12/31/2012, we need to consider the Accounts Receivable and the Allowance for Doubtful Accounts.

Accounts Receivable represents the total amount owed to the company by its customers, which is $5,000 in this case. The Allowance for Doubtful Accounts of $500 reflects the amount that the company does not expect to collect; however, it does not affect the total amount owed by customers.

Therefore, the total amount owed by customers at 12/31/2012 remains:

**$5,000**

So the correct answer is **$5,000**.