Answer:
Net realizable value accounts receivables December 31 2019 - $ 43,400
Explanation:
Computation of Net realizable value of Accounts receivable balance
<u>Accounts Receivable Movements</u>
Opening balance: Accounts Receivable $ 88,000
Add: Credit sales $ 120,000
Add: Accounts receivable written off reinstated $ 6,000
Less: Cash collections $ ( 150,000)
Less; Receivables written off during the year <u>$ ( 4,000)</u>
Accounts receivable - December 31 2019 $ 60,000
<u>Allowance for uncollectible accounts movements</u>
opening balance $ 8,000
Add: Bad debts expense provided for the year
Credit sales * 5.5 % $ 120,000 $ 6,600
Add: Reinstatement of previous written off amount $ 6,000
Less: Receivable written off during <u>$ ( 4,000)</u>
Closing balance` <u>$ 16,600</u>
Net realizable value - Accounts Receivable $ 43,400