Question

Before year-end adjusting entries, Coronado Industries's account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1480000 and $78800, respectively. An aging of accounts receivable indicated that $124000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is

Answer 1

Answer: $1,356,000

Step-by-step explanation:

Given the following;

accounts receivable =$1480000

Allowance for uncollectible accounts = $78800

Ending allowance for doubtful account = $124000

Net realizable value for receivables is the difference between receivables and ending allowance for doubtful accounts

NRV for receivables = receivables - Ending allowance for doubtful account

= $1,480,000 - $124,000 = $1,356,000

Net realizable value for receivables after adjustment is $1,356,000