At the End of the Current Year,Accounts Receivable Has a Balance

question 52

Multiple Choice

At the end of the current year,Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,500,000.An analysis of receivables estimates uncollectible receivables as $25,000. Determine the net realizable value of accounts receivable after adjustment.Hint: Determine the amount of the adjusting entry for bad debt expense and the adjusted balance of Allowance of Doubtful Accounts.

• A)$550,000
• B)$544,500
• C)$525,000
• D)$575,000

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Definitions:

Subtotals

The intermediate totals calculated during the process of adding or summarizing a list of numbers, often seen in invoices or financial statements.

Subdivisions

Parts or sections into which something is divided or segment, often for organizational or categorization purposes.

Percentages

A mathematical term used to express a number or ratio as a fraction of 100.

Visual

Relating to or using sight, pertaining to imagery or visual media.