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An analysis and aging of the accounts receivable of Tamarisk, Inc. at December 31 reveal these...

An analysis and aging of the accounts receivable of Tamarisk, Inc. at December 31 reveal these data:

Accounts receivable

$3240000

Allowance for doubtful accounts per books before adjustment (credit)

340000

Total estimated uncollectible accounts at December 31

404000


What is the cash realizable value of the accounts receivable at December 31 after adjustment?

$2836000

$2900000

$3240000

$2496000
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Homework Answers

Answer #1

Accounts receivable = $3,240,000

Allowance for doubtful accounts per books before adjustment (credit) = $340,000

Total estimated uncollectible accounts at December 31 = $404,000

The cash realizable value of the accounts receivable at December 31 after adjustment = Accounts receivable - Total estimated uncollectible accounts at December 31 =

= 3,240,000-404,000

= $2,836,000

First option is correct.

Please give a positive rating if you are satisfied with this solution and if you have any query kindly ask.

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