CVM Company had a total accounts receivable of 250,000 atDecember 31, 20x1. An aging analysis of the accountsreceivable and an estimate of possible credit losses are asfollows:ClassificationBalance% Credit loss1-60 days175,0001%61-120 days?2%121-180 daysOver 180 daysC. What is the net realizable value of the Accounts25,00010%25,00050%receivable at December 31 20x1?P92,500P237, 750O P233,250O P232,750

Net realisable value of receivables is the amount of receivables after adjustment of credit loss.

Answered: C. What is the net realizable value of…

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C. What is the net realizable value of the Accounts receivable at December 31 20x1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

CVM Company had a total accounts receivable of 250,000 at
December 31, 20x1. An aging analysis of the accounts
receivable and an estimate of possible credit losses are as
follows:
Classification
Balance
% Credit loss
1-60 days
175,000
1%
61-120 days
?
2%
121-180 days
Over 180 days
C. What is the net realizable value of the Accounts
25,000
10%
25,000
50%
receivable at December 31 20x1?
P92,500
P237, 750
O P233,250
O P232,750

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