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At the end of March,the unadjusted trial balance of Tutor,Inc.included the following accounts:

-Tutor uses the balance sheet approach in estimating uncollectible accounts expense,and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400.The net realizable value of Tutor's accounts receivable in the March 31 balance sheet is:
A)$247,400.
B)$240,000.
C)$232,600.
D)$352,600.

Question

[The following information applies to the questions displayed below.]
At the end of March,the unadjusted trial balance of Tutor,Inc.included the following accounts:
 
-Tutor uses the balance sheet approach in estimating uncollectible accounts expense,and aging the accounts receivable indicates the estimated uncollectible portion to be $7,400.The net realizable value of Tutor's accounts receivable in the March 31 balance sheet is:
A)$247,400. 
B)$240,000. 
C)$232,600. 
D)$352,600.

Quizplus · Accepted Answer

To calculate the net realizable value of accounts receivable, we need to subtract the estimated uncollectible portion ($7,400) from the total accounts receivable ($240,000). Therefore, net realizable value = $240,000 - $7,400 = $232,600. Hence, option C is the correct answer.

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