Question

Before year-end adjusting entries, Dunn Company's account balances at December 31, 2010, for accounts receivable and the related allowance for uncollectible accounts were $600,000 and $45,000, respectively. An aging of accounts receivable indicated that $62,500 of the December 31 receivables are expected to be uncollectible. The net realizable value of accounts receivable after adjustment is

Answer 1

Answer: $537500

Explanation:

The net realizable value of accounts receivable after adjustment will be the difference between the account receivable at December 31st and the expected uncollectible. This will be:

= $600,000 - $62,500

= $537500

Therefore, the answer is $537500