Accounts Receivable are reflected on the statement of financial position at the carrying amount which is
A)Accounts Receivable plus Allowance for Doubtful Accounts.
B)Accounts Receivable less Allowance for Doubtful Accounts.
C)Accounts Receivable plus Bad Debt Expense.
D)Accounts Receivable less Bad Debt Expense.

Question

Quizplus · Accepted Answer

Accounts Receivable are reflected on the statement of financial position at their net realizable value which is the carrying amount (Accounts Receivable) less an allowance for estimated uncollectible amounts (Allowance for Doubtful Accounts). Therefore, the correct answer is B, Accounts Receivable less Allowance for Doubtful Accounts.

Accounts Receivable Are Reflected on the Statement of Financial Position