Final answer:
During the year, the Estimated Revenues Not Yet Realized account will commonly have a credit or positive balance. This balance represents revenue that has been recognized but not yet received in cash.
Step-by-step explanation:
During the year, the Estimated Revenues Not Yet Realized account will commonly have a credit or positive balance. This balance represents the revenue that has been recognized and recorded in the accounting books, but has not yet been received in cash.
For example, if a company provides services and issues invoices to its customers, the revenue from those services is recognized when the invoices are recorded as accounts receivable. However, until the customers actually pay the invoices and the cash is received, the revenue remains in the Estimated Revenues Not Yet Realized account.
It is important for companies to monitor this account and track the outstanding receivables to ensure timely collection of cash and accurate financial reporting.