Final answer:
The face value of Accounts Receivable plus the balance in the Allowance for Doubtful Accounts is equal to the net realizable value of the receivables.
Step-by-step explanation:
The statement in the question is true.
The face value of Accounts Receivable represents the total amount owed by customers, while the allowance for doubtful accounts is a contra asset account that represents the estimated amount of uncollectible receivables. The net realizable value of the receivables is the difference between the face value of accounts receivable and the balance in the allowance for doubtful accounts.
For example, if the face value of accounts receivable is $10,000 and the balance in the allowance for doubtful accounts is $1,000, then the net realizable value of the receivables is $9,000 ($10,000 - $1,000).