Question

Before year-end adjusting entries, Marigold Corp.'s account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1430000 and $87400, respectively. An aging of accounts receivable indicated that $128000 of the December 31 receivables are expected to be uncollectible. What is the net realizable value of accounts receivable after adjustment is made?

Answer 1

Answer:

$1,302,000

Explanation:

To calculate the net realizable value of accounts receivable we have to subtract the value of accounts receivables aging report from total accounts receivable = $1,430,000 - $128,000 = $1,302,000

The accounts receivables aging report lists unpaid clients' invoices and unused credit memos.