If a company has trading securities, it will report unrealized gain or loss from changes in the value of the trading securities on the income statement only if there is a loss. directly in shareholders' equity. only when sold. as part of net income.

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)