After the accounts are adjusted and closed at the end of the fiscal year,Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000.What is the net realizable value of the accounts receivable?
A)$30,000
B)$460,000
C)$430,000
D)$400,000

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is the actual amount of accounts receivable a company expects to receive. This is calculated by subtracting the allowance for doubtful accounts from the accounts receivable balance. So, the net realizable value in this case would be:
$430,000 - $30,000 = $400,000 
Therefore, the correct answer is D.

After the Accounts Are Adjusted and Closed at the End