The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable Allowance for Uncollectible Accounts (Credit) UncollectibleAccount Expense What is the net realizable value of the accounts receivable?

Complete Questions:

The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable $1,105,000. Allowance for uncollectible accounts (credit) $37,000. Uncollectible-Account Expense $64,000 .  What is the net realizable value of the accounts receivable?

A. $1,142,000

B. $1,169,000

C. $1,105, 000

D. $1,068,000

Explain

Thomas Corporation

D. $1,068,000

Explanation:

1. Data and Calculations:

Accounts Receivable $1,105,000

less Allowance for uncollectible accounts (credit) $37,000

Net realizable value = $1,068,000

2. Thomas Corporation's Accounts Receivable balance is a debit balance and the Allowance for uncollectible accounts is a credit balance.  Since the Allowance for uncollectible accounts is a contra account to the Accounts Receivable, when the two are netted, the balance is the net realizable value of the Accounts Receivable.

3. Thomas cannot include the Uncollectible-Account Expense of $64,000

in the computation of the net realizable value since it has been charged and closed to the income summary and as a temporary account, it cannot be treated as other permanent accounts.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

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1. economic development

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3.technological development

4. education