After the Accounts Are Adjusted and Closed at the End

question 93

Multiple Choice

After the accounts are adjusted and closed at the end of the year,Accounts Receivable has a normal balance of $560,000 and Allowance for Doubtful Accounts has a normal balance of $35,000.What is the net realizable value of the Accounts Receivable?

• A)$525,000
• B)$595,000
• C)$560,000
• D)The amount cannot be determined from the given information.

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Definitions:

Par Value

Par Value is the face value of a bond or share of stock as stated by the issuing company, and it's often a nominal amount used for accounting purposes.

Dividends Payable

This is a liability on the balance sheet representing the amount of dividends that a corporation has declared but not yet paid to its shareholders.

Current Liability

A company's debt or obligations that are due within one year.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if they are not paid in the year they are due, prioritizing these payment backlogs for future distribution.