Question

A company has the following balances on December 31, 2018, after year-end adjustments: Accounts Receivable = $62,500; Allowance for Uncollectible Accounts = $6,200.

Calculate the net realizable value of accounts receivable.

Answer 1

the net realizable value of accounts receivable $56.300

Step-by-step explanation:

To calculate the net realizable value of accounts receivable is necessary to deduct from Account Receivable the total credit amount of the Allowance for Uncollectible Accounts.

The Debit value of Accounts Receivable minus the credit balance of Allowance for Uncollectible Accounts gives the Net Value of Accounts receivables.