An analysis and aging of jay co.’s accounts receivable at december 31 disclosed the following: accounts receivable $900,000 allowance for uncollectible accounts, per books 50,000 amounts deemed uncollectible 64,000 the net realizable value of the accounts receivable at december 31 should be

Net Realizable balance of accounts receivables = $836,000

Explanation:

As for the provided information, we have:

Balance of accounts receivables = $900,000

This balance represents the total amount which is to be received by the company from the debtors as debtors owe this amount to company.

Allowance for un-collectible receivables = $50,000

This balance clearly represents the amount which the company will not be able to collected and this is now accounted for, through a credit account allowance for un-collectible receivables.

Further it is provided that, the deeming amount of un-collectibles = $64,000.

Now this shall clearly represent the net and final amount which the company would not be able to collect. The above balance of $50,000 is un-adjusted balance.

Therefore, net collectible or we can say realizable balance of accounts receivables = $900,000 - $64,000 = $836,000.

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