Question

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $673,252 and Allowance for Doubtful Accounts has a balance of $25,716. What is the net realizable value of the accounts receivable?

Answer 1

Net realizable value = $647536

Step-by-step explanation:

Below is the calculation for net realizable value:

Given the accounts receivable = $673252

Allowance for doubtful accounts = $25716

Net realizable value = Accounts receivable - allowance for doubtful account

Net realizable value = 673252 - 25716

Net realizable value = $647536

Therefore the net realizable value is $647536.