Prior to adjustments, Willett Company's account balances at December 31, 2018, for Accounts Receivable and the related Allowance for Uncollectible Accounts were $2,700,000 and $120,000, respectively. An aging of accounts receivable indicated that $207,000 of the December 31, 2018, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2018, was ________.

Question

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The net realizable value of accounts receivable is calculated by subtracting the allowance for uncollectible accounts from the accounts receivable balance. The allowance needs to be adjusted to $207,000 based on the aging analysis. Therefore, the net realizable value is $2,700,000 - $207,000 = $2,493,000.

Prior to Adjustments, Willett Company's Account Balances at December 31