Perez Company Began Year 2 with a Balance of $148,000

question 13

Essay

Perez Company began Year 2 with a balance of $148,000 in accounts receivable and $8,600 in allowance for doubtful accounts. During the year, the company recognized $656,000 of service earned on account and collected $580,000 cash from accounts receivable. Perez wrote off $6,500 of uncollectible accounts during Year 2. At the end of the year, the company prepared an aging schedule and adjusted its accounts based on the estimate that $12,600 of receivables would not be collected.Required:What was the net realizable value of Perez accounts receivable at the end of Year 2?

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Definitions:

Systolic Cycle

The phase of the heartbeat when the heart muscle contracts and pumps blood from the chambers into the arteries, raising arterial blood pressure.

Diastolic Cycle

The phase of the heart cycle during which the heart muscles relax and the chambers of the heart fill with blood.

Korotkoff Phase

Sounds heard over an artery when blood pressure is measured, used to identify systolic and diastolic pressures.

Rectal Temperature

A method of measuring body temperature by inserting a thermometer into the rectum, providing a highly accurate reflection of the body's core temperature.