Question

The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:

Accounts Receivable $1,100,000
Allowance for Uncollectible Accounts (Credit) $37,000
Uncollectible-Account Expense $63,000
What is the net realizable value of the accounts receivable?
A. $1,137,000
B. $1,063,000
C. $1,100,000
D. $1,163,000

Answer 1

Answer: $1,063,000

Step-by-step explanation:

Net realizable value is the value of an asset that a company will get when the asset is sold minus the cost that came with the asset sales.

The net realizable value of the accounts receivable will be the accounts receivable of $1,100,000 minus the allowance for uncollectible accounts which was given as $37,000.

= $1,100,000 - $37,000

= $1,063,000