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At the end of January,the unadjusted trial balance of Windsor,Inc.included the following accounts:

-Windsor 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 Windsor's accounts receivable in the January 31 balance sheet is:
A)$331,800.
B)$340,000.
C)$332,600.
D)$347,400.

Question

[The following information applies to the questions displayed below.]
At the end of January,the unadjusted trial balance of Windsor,Inc.included the following accounts:
 
-Windsor 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 Windsor's accounts receivable in the January 31 balance sheet is:
A)$331,800. 
B)$340,000. 
C)$332,600. 
D)$347,400.

Quizplus · Accepted Answer

To calculate the net realizable value of accounts receivable, we need to subtract the estimated uncollectible portion (in this case, $7,400) from the total accounts receivable balance. 
Total accounts receivable = $340,000 
Net realizable value = Total accounts receivable - Estimated uncollectible portion 
Net realizable value = $340,000 - $7,400 = $332,600 
Therefore, the correct answer is C.

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