Question

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

Answer 1

Net realizable value = $430,000

Step-by-step explanation:

Given:

Accounts Receivable balance = $460,000

Allowance for Doubtful Accounts = $30,000

Find:

Net realizable value

Computation:

Net realizable value = Accounts Receivable balance - Allowance for Doubtful Accounts

Net realizable value = $460,000 - $30,000

Net realizable value = $430,000