Question

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $703,938 and Allowance for Doubtful Accounts has a balance of $19,734. What is the net realizable value of accounts receivable? a.$684,204 b.$723,672 c.$703,938 d.$19,734

Answer 1

The net realizable value of accounts receivable is $684,204

Step-by-step explanation:

• To calculate subtract the doubtful-accounts allowance from the total accounts receivable. The result will be the net realizable value of accounts receivable.

• accounts receivable = $703,938

• doubtful-accounts = $19,734.

• the net realizable value of accounts receivable =

• accounts receivable ± doubtful-accounts

• Therefore, the net realizable value of accounts receivable is $684,204