Question

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $726,887 and Allowance for Doubtful Accounts has a balance of $23,312. What is the net realizable value of accounts receivable?

Answer 1

$703,575

Step-by-step explanation:

The computation of the net realizable value of accounts receivable is shown below:-

Net realizable value of accounts receivable = Accounts Receivable - Allowance for doubtful accounts

= $726,887 - $23,312

= $703,575

So, for computing the net realizable value of accounts receivable we simply applied the above formula.