At the End of the Current Year, Accounts Receivable Has

question 75

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 net 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 Allowance of Doubtful Accounts.)

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

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Definitions:

International Cartel

A consortium of independent organizations formed to limit competition and control prices in international markets.

OPEC

The Organization of Petroleum Exporting Countries, a consortium of countries that coordinates and unifies the petroleum policies of its member countries to secure fair and stable prices for petroleum producers.

OPEC

The Organization of the Petroleum Exporting Countries is an intergovernmental organization of 13 oil-producing countries that coordinates and unifies petroleum policies among member countries.

Free-Trade Zone

A designated geographic area where goods may be landed, handled, manufactured, or reconfigured and re-exported without the intervention of customs authorities.