Willis company had $200,000 in credit sales for 2016, and it estimated that 2% of the credit sales would not be collected. the balance in accounts receivable at the end of the year was $38,000. willis had never used the allowance method to account for its receivables till 2016. the net realizable value of its accounts receivable at the end of the year was $34,000. true false

True

Explanation:

It's True because you have to deduct from the total Accounts Receivable the balance in the Cr Allowance for Uncollectible Accounts  estimated.

The company estimate that 2% of the total Credit Sales will be uncollectible, which is, $4,000, if we deduct this value of the balance of accounts receivable of $38,000, we have a Net Realizable Value of Accounts Receivable of $34,000

Credit Sales$ 200,000

Cr Allowance for Uncollectible Accounts$ 4,000

Dr Accounts receivable$ 38,000

Net Realizable Value of Accounts receivable$ 34,000

answer; the correct answer is (0.08);