Reference no: EM132858990

Question - Germany Company started business at the beginning of the current year. The entity established an allowance for doubtful accounts estimated at 5% of credit sales. During the year, the entity wrote off 50,000 of uncollectible accounts. Further analysis showed that merchandise purchased amounted to 9,000,000 and ending merchandise inventory was 1,500,000. Goods were sold at 40% above cost. The total sales comprised 80% sales on account and 20% cash sales. Total collections from customers, excluding cash sales, amounted to 6,000,000. What is the net realizable value of accounts receivable at year-end?