The amount of accounts receivable that is actually expected to be collected is known as:
A)Allowance for doubtful accounts.
B)Uncollectible accounts expense.
C)The present value of accounts receivable.
D)Net realizable value.

Question

Quizplus · Accepted Answer

The amount of accounts receivable that is expected to be collected is known as the net realizable value. This value is calculated by subtracting the allowance for doubtful accounts from the total accounts receivable. The net realizable value represents the actual amount of cash that is expected to be received from the accounts receivable.

The Amount of Accounts Receivable That Is Actually Expected to Be