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

Question 57

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Before adjusting entries, Clark's accounts receivable and allowance for doubtful accounts are $42,000 and $300 (credit balance), respectively. Clark determined that 0.4% of net sales would probably be uncollectible. Sales during the year were $500,000 and sales returns amounted to $6,000. Calculate the net realizable value of accounts receivable on Clark's balance sheet at year-end.

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$42,000 - ...

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