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2 January, 07:21

Before year-end adjusting entries, Dunn Company's account balances atDecember 31, 2017, for accounts receivable and the related allowancefor uncollectible accounts were $1,500,000 and $90,000, respectively. An aging of accounts receivable indicated that $125,000 of theDecember 31 receivables are expected to be uncollectible. The netrealizable value of accounts receivable after adjustment isa.$1,465,000. b.$1,375,000. c.$1,285,000. d.$1,410,000.

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  1. 2 January, 09:10
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    b.$1,375,000

    Explanation:

    Dunn Company's

    Allowance for uncollectible accounts $1,500,000

    Less Accounts receivable expected to be Uncollectible $125,000

    Net Realizable value of account receivable $1,375,000

    Therefore the net realizable value of accounts receivable after adjustment will be $1,375,000
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