SPI Company has the following data for the year ended December 31, Year 1: Sales (credit)...

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SPI Company has the following data for the year ended December 31, Year 1: Sales (credit) Sales returns and allowances Accounts receivable (December 31, Year 1) Allowance for doubtful accounts (before adjustment at December 31, Year 1) Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1) $2,500,000 50,000 640,000 $595,000 $615,000 $620,000 $640,000 20,000 45,000 If the company uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense? SPI Company has the following data for the year ended December 31, Year 1: Sales (credit) Sales returns and allowances Accounts receivable (December 31, Year 1) Allowance for doubtful accounts (before adjustment at December 31, Year 1) Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1) $2,500,000 50,000 640,000 $595,000 $615,000 $620,000 $640,000 20,000 45,000 If the company uses the aging of accounts receivable approach to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?

Answer rating: 100% (QA)

The net realizable value NRV of accounts receivable is calculated by subtracting the allowance for d... View the full answer