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Final exam

1.         After the accounts are adjusted at the end of the year, Accounts Receivable has a balance of \$215,000, Uncollectible Accounts Expense has a balance of \$17,500, and Allowance for Doubtful Accounts has a balance of \$12,500. What is the net realizable value of the accounts receivable?

Uncollectible Accounts Expense balance of \$17,500 does not in anyway affect the net realizable value of the accounts receivable.

Balance of Accounts Receivable                              =    \$215,000,

Less: Allowance for Doubtful Accounts                  = (-) \$12,500

Net realizable value of the accounts receivable    =     \$202,500

2.         Explain the meaning of the terms "tangible" and "intangible" and discuss how these terms are used in describing assets.

Tangible: Something that can be physically touched or felt. For example something real and substantial; 'the tangible benefits of sunshine e.g. the warmth'. Intangible: Something that cannot be touched. If something is intangible it does not mean it's not real. It just means it has no physical existence like emotions.

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