Determine net realizable value of receivables at year end

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Problem 1: The Allowance for Doubtful Account has a $6,800 debit balance prior to adjustment. Net credit sales during the year are $6,000,000 and ½ of ¾% of credit sales are estimated to be uncollectible. Accounts Receivable has a balance of $375,000 at the ending of the year. Determine the net realizable value of the receivables at year end. Show the allowance account and show your calculations.

Reference no: EM132830814

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