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levacccp [35]
3 years ago
6

An analysis and aging of the accounts receivable of Yates Company at December 31 reveal these data:Accounts receivable $ 1,600,0

00Allowance for doubtfulaccounts per books beforeadjustment (credit) 100,000Amounts expected to becomeuncollectible 130,000What is the cash realizable value of the accounts receivable at December 31 after adjustment?a. $1,370,000b. $1,500,000c. $1,600,000d. $1,470,000
Business
1 answer:
saveliy_v [14]3 years ago
4 0

Answer:

d. $1,470,000

Explanation:

The computation of the cash realizable value of the accounts receivable is shown below:

= Ending balance of accounts receivable - credit balance of uncollectible amount

= $1,600,000 - $1,30,000

= $1,470,000

For finding out the cash realizable value, we deduct the credit balance of uncollectible amount from the ending balance of accounts receivable

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