Reference no: EM132674397

The following data were taken from the records of Infra Company for the year ended December 31, 2009:

Sales on account 3,600,000

Notes received to settle accounts 400,000

Provision for doubtful accounts 90,000

Accounts receivable determined to be worthless 25,000

Purchases on account 3,900,000

Payments to creditors 3,200,000

Discounts allowed by creditors 260,000

Merchandise returned by customer 15,000

Collections received to settle accounts 2,450,000

Notes given to creditors in settlement of accounts 250,000

Merchandise returned to suppliers 70,000

Payments on notes payable 100,000

Discounts taken by customers 40,000

Collections received in settlement of notes 180,000

Problem 1: What is the net realize value of accounts receivable on December 31, 2009?

a. 605,000
b. 890,000
c. 825,000
d. 670,000