When an Allowance for Impairment is used, accounts receivable are valued in the balance sheet at their estimated collectible amount.

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This is because the allowance for impairment is a contra-asset account that is used to offset the accounts receivable account and reflect the estimated amount that may not be collected. The resulting net value of the accounts receivable reflects their estimated collectible amount.

When an Allowance for Impairment Is Used, Accounts Receivable Are