Question

after the accounts are adjusted and closed at the end of the fiscal year, accounts receivable has a balance of $725,106 and allowance for doubtful accounts has a balance of $19,130. what is the net realizable value of the accounts receivable? a. $19,130 b. $725,106 c. $705,976 d. $744,236

Answer 1

To find the net realizable value of the accounts receivable, subtract the Allowance for Doubtful Accounts ($19,130) from the Accounts Receivable balance ($725,106), resulting in $705,976. The correct answer is option: c. $705,976

Step-by-step explanation:

The net realizable value of the accounts receivable is calculated by subtracting the Allowance for Doubtful Accounts balance from the Accounts Receivable balance.

Given that the Accounts Receivable has a balance of $725,106 and the Allowance for Doubtful Accounts has a balance of $19,130, we perform the following calculation:

$725,106 - $19,130 = $705,976

Thus, the net realizable value of the accounts receivable is $705,976, which corresponds to answer option (c).