Question

Before year-end adjusting entries, Coronado Industries's account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1480000 and $78800, respectively. An aging of accounts receivable indicated that $124000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is $1401200. $1356000. $1434800. $1277200.

Answer 1

Answer:

$1,356,000

Explanation:

The net realizable value of accounts receivable after the net adjustment is computed as;

= Ending balance in accounts receivable - Uncollectible ageing accounts receivable

Given that;

Ending balance in accounts receivable = $1,480,000

Uncollectible ageing accounts receivable = $124,000

Net realizable value of accounts receivable after the net adjustment is

= $1,480,000 - $124,000

= $1,356,000