Final answer:
Accounts receivable are reported on a company's balance sheet at the net realizable value, which is the expected cash to be received minus potential losses like bad debts.
Step-by-step explanation:
Accounts receivable are reported at net realizable value. This reflects the amount of money that a company expects to actually receive in cash, as opposed to the total amount of credit sales made, which may not be fully collectible due to potential future account adjustments for returns, allowances, or potential bad debts. Characteristic of a bank's balance sheet, where assets, liabilities, and net worth are listed, accounts receivable would fall under the assets category and should represent the realizable cash value from customers.
Loans made by the bank, similar to accounts receivable, are also assets but are evaluated based on what tAccounts receivable are reported at net realizable value on a balance sheet. Net realizable value is the amount of cash that a company expects to collect from its accounts receivable after deducting any allowances for bad debts. It represents the estimated amount that the company will actually receive from its customers.he market is willing to pay for them if sold, suggesting their market value.