After the Accounts Are Adjusted at the End of the Year

question 71

Short Answer

After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of $450,000, Uncollectible Accounts Expense for the year was $35,000, and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable?

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Definitions:

Debt Investments-HTM

Investments in debt securities intended to be held to maturity, accounting for fixed-income investments until they are redeemed.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to the bondholder.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically represented as an annual percentage of the loan principal.

Unrealized Gain

An increase in the value of an asset that has not been sold yet; hence, the gain is not reflected in the income statement.