Final answer:
The net realizable value of Thomas Corporation's accounts receivable is calculated by subtracting the allowance for uncollectible accounts, resulting in a net value of $1,066,000.
Step-by-step explanation:
The net realizable value of the accounts receivable for Thomas Corporation can be calculated by taking the total Accounts Receivable balance and subtracting the Allowance for Uncollectible Accounts. The accounts receivable amount is $1,101,000 and the allowance for uncollectible accounts is a credit balance of $35,000.
Therefore, the net realizable value is: Accounts Receivable - Allowance for Uncollectible Accounts = $1,101,000 - $35,000 = $1,066,000. This value represents the amount of receivables the company expects to collect and is reported on the balance sheet.
It is important to note that Uncollectible-Account Expense reflects the company's expense recognition for the period and does not directly affect the calculation of net realizable value at year-end.