Final answer:
To find the net realizable value of receivables, we adjust for estimated bad debts from the total accounts before any doubtful debts adjustments. Calculating based on the given figures, the net realizable value should be $1,330,500. However, this answer is not listed in the provided options, indicating a possible error in the figures or the options.
Step-by-step explanation:
To calculate the net realizable value of receivables for Becky's company, we need to start with the accounts receivable balance at the end of 2013 and adjust for the estimated bad debts from the net sales in 2014.
Beginning accounts receivable at December 31, 2013: $750,000 (debit balance).
Becky had net sales (all on account) in 2014 of $600,000.
We add this to the beginning balance to get total accounts receivable before adjustments for bad debts: $750,000 + $600,000 = $1,350,000.
Becky estimates that 3% of her net sales will prove to be uncollectible. So, we calculate the expected bad debts as follows: $600,000 x 3% = $18,000.
The Allowance for Doubtful Accounts had a debit balance before adjusting, which is unusual and indicates previous overestimation of bad debts. We correct this by adding the $1,500 to the estimated bad debts for the current period: $18,000 + $1,500 = $19,500.
Therefore, the adjusted Allowance for Doubtful Accounts will be a credit of $19,500.
Finally, to find the net realizable value, we subtract the adjusted allowance from the total accounts receivable: $1,350,000 - $19,500 = $1,330,500.
However, none of the options given in the question matches this value. Please double-check the figures provided or your selection options as there seems to be an error.