Following the completion of an aging analysis, the accountant for Liberty estimated that $1,100 of the receivables would be uncollectible. What would the net realizable value of the receivables on Liberty's year-end balance sheet be?
A) $30,100.
B) $28,900.
C) $29,900.
D) $28,800.

Question

Quizplus · Accepted Answer

The net realizable value of the receivables is the total amount of receivables minus the estimated uncollectible amount. In this case, the total amount of receivables is $30,000 and the estimated uncollectible amount is $1,100. Therefore, the net realizable value of the receivables is $30,000 - $1,100 = $28,900.

Following the Completion of an Aging Analysis, the Accountant for Liberty