After the Accounts Are Adjusted at the End of the Year,Accounts

question 17

Essay

After the accounts are adjusted at the end of the year,Accounts Receivable has a balance of $225,000,Uncollectible Accounts Expense for the year was $17,500,and Allowance for Doubtful Accounts has a balance of $12,500.What is the net realizable value of the accounts receivable?

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Definitions:

Mixed Cost

Expenses that have both fixed and variable components, changing with levels of production but not in direct proportion.

Variable Cost

A cost that varies with the level of output or sales, such as materials or commissioned labor.

Fixed Cost

A cost that does not vary with the level of output or sales over a certain period, such as rent or salaries.

Break-even Point

The point at which total costs and total revenue are equal, meaning no profit or loss is made, illustrating the minimum sales volume needed to cover fixed and variable costs.