Before Adjusting Entries, Kilby Corp's Accounts Receivable and Allowance for Doubtful

Multiple Choice

Before adjusting entries, Kilby Corp's accounts receivable and allowance for doubtful accounts are $745,000 and $7,000 (credit balance) , respectively. Using an aging schedule of accounts receivable, it is determined that $60,000 of the accounts receivable would probably be uncollectible. Calculate the net realizable value of Truman's receivables at year end.

A) $681,000
B) $695,000
C) $809,000
D) $685,000