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11 October, 01:52

An analysis and aging of the accounts receivable of Yates Company at December 31 reveal these dа ta:Accounts receivable $ 1,600,000Allowance for doubtfulaccounts per books beforeadjustment (credit) 100,000Amounts expected to becomeuncollectible 130,000What is the cash realizable value of the accounts receivable at December 31 after adjustment? a. $1,370,000b. $1,500,000c. $1,600,000d. $1,470,000

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  1. 11 October, 03:59
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    d. $1,470,000

    Explanation:

    The computation of the cash realizable value of the accounts receivable is shown below:

    = Ending balance of accounts receivable - credit balance of uncollectible amount

    = $1,600,000 - $1,30,000

    = $1,470,000

    For finding out the cash realizable value, we deduct the credit balance of uncollectible amount from the ending balance of accounts receivable
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