Most trade receivables are initially recorded at their

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Quizplus · Accepted Answer

Most trade receivables are initially recorded at their maturity values, which is the full amount that the debtor is expected to pay at the time of the receivable's due date. This is because the discounting or present valuing of the receivable would be based on estimated interest rates or discount rates, which may not be accurate until closer to the due date. Similarly, net cash values may not be known until the debtor actually pays the receivable, so this is also not typically used as the initial recording value.

Most Trade Receivables Are Initially Recorded at Their