An analysis and aging of account receivable of the Peachey Company at Dec, 2008:
Acounts Receivable... 840,000
Allowance for doubtful accounts
(before adjustment)... 36,000
Accounts estimated to be uncollectible... 76,800
Compute the net realizable value of the accounts receivable of Peachey company at Dec 31,2008
Our working: 840,000 - 36,000 - 76,800 = 727,200
Please tell us is it correct or what are we doing wrong. :confused: