A Company Has the Following Balances on December 31, 2012

question 101

Essay

A company has the following balances on December 31, 2012, after year-end adjustments: Accounts Receivable = $62,000; Allowance for Uncollectible Accounts = $6,000. Calculate the net realizable value of accounts receivable.

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Definitions:

Negotiability

The quality of a financial instrument that allows it to be transferred from one party to another with minimal legal restrictions.

Sum Certain

A specified, fixed amount of money that is agreed upon in a financial or legal document, leaving no ambiguity regarding the amount.

Requirements

Specific criteria or conditions that must be met in order to fulfill an agreement or complete a project.

Bearer Instrument

A bearer instrument is a type of document that allows the holder to claim the rights or assets it represents without endorsing or proving ownership.