Durler Company's account balances at December 31 for Accounts Receivable and the related Allowance for Doubtful Accounts are $1,200,000 and $19,500, respectively. From an analysis of accounts receivable, it is estimated that $42,000 of the December 31 receivables will be uncollectible. After adjustment for the above facts, the net realizable value of accounts receivable would be

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The net realizable value of accounts receivable is calculated by subtracting the estimated uncollectible receivables from the total accounts receivable. The existing Allowance for Doubtful Accounts is $19,500, and the estimated uncollectible receivables are $42,000. The adjustment needed is $42,000 - $19,500 = $22,500. Therefore, the adjusted Allowance for Doubtful Accounts is $42,000, and the net realizable value of accounts receivable is $1,200,000 - $42,000 = $1,158,000.

Durler Company's Account Balances at December 31 for Accounts Receivable