An analysis and aging of the accounts receivable of prince company at december 31 reveals the following data.
accounts receivable = $800,000
allowance for doubtful accounts per books before adjustment = 50,000
amounts expected to become uncollectible = 65,000
the cash realizable value of the accounts receivable at december 31, after adjustment, is:
a. $685,000b. $750,000c. $800,000d. $735,000

d. $735,000

Explanation:

Allowance account currently has a credit balance of $50000.

Amount expected to become uncollectible is $65000

allowance account balance = $50000 + $65000

                                               = $115,000

amount Recievable reduces = $800,000 - $65000

                                               = $735,000

Therefore, The cash realizable value of the accounts receivable at December 31, after adjustment, is $735,000.

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