Question & Answer: An analysis and aging of the accounts receivable of Raja Company at December 31 reveal the following data:…..

An analysis and aging of the accounts receivable of Raja Company at December 31 reveal the following data:

Accounts receivable $800,000
Allowance for doubtful accounts balance before adjustment (credit) 12,000
Amounts expected to become uncollectible 65,000

How much is the cash (net) realizable value of the accounts receivable at December 31, after adjustment?

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Expert Answer

 

Cash (net) realizable value of the accounts receivable = 800000-65000 = 735000
Option 3 is correct

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