After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $500,000 and Allowance for Doubtful Accounts has a balance of $25,000.What is the net realizable value of the accounts receivable?
A) $25,000
B) $525,000
C) $500,000
D) $475,000

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated by subtracting the Allowance for Doubtful Accounts from the Accounts Receivable balance. Therefore, the net realizable value in this scenario is $475,000 ($500,000 - $25,000).

After the Accounts Are Adjusted and Closed at the End