A company performed an aging of accounts receivable on December 31 and gathered the following information: What is the net realizable value of accounts receivable to be reported on the balance sheet at December 31?
A)$505,000
B)$496,000
C)$467,000
D)$516,000

Question

A company performed an aging of accounts receivable on December 31 and gathered the following information:  What is the net realizable value of accounts receivable to be reported on the balance sheet at December 31?
A)$505,000 
B)$496,000 
C)$467,000 
D)$516,000

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated by subtracting the allowance for doubtful accounts from the accounts receivable. Based on the aging analysis, the allowance for doubtful accounts should be $9,000 ($500,000 * 1.8%). Therefore, the net realizable value of accounts receivable is $496,000 ($505,000 - $9,000).

A Company Performed an Aging of Accounts Receivable on December