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7 September, 01:23

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

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  1. 7 September, 01:49
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    Answer: $1,356,000

    Explanation:

    Given the following;

    accounts receivable = $1480000

    Allowance for uncollectible accounts = $78800

    Ending allowance for doubtful account = $124000

    Net realizable value for receivables is the difference between receivables and ending allowance for doubtful accounts

    NRV for receivables = receivables - Ending allowance for doubtful account

    = $1,480,000 - $124,000 = $1,356,000

    Net realizable value for receivables after adjustment is $1,356,000
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