Question

Before year-end adjusting entries, Dunn Company's account balances atDecember 31, 2017, for accounts receivable and the related allowancefor uncollectible accounts were $1,500,000 and $90,000, respectively.An aging of accounts receivable indicated that $125,000 of theDecember 31 receivables are expected to be uncollectible. The netrealizable value of accounts receivable after adjustment isa.$1,465,000.b.$1,375,000.c.$1,285,000.d.$1,410,000.

Answer 1

b.$1,375,000

Step-by-step explanation:

Dunn Company's

Allowance for uncollectible accounts $1,500,000

Less Accounts receivable expected to be Uncollectible $125,000

Net Realizable value of account receivable $1,375,000

Therefore the net realizable value of accounts receivable after adjustment will be $1,375,000