The net realizable value of accounts receivable is calculated as ________.
A) net receivables plus sales discounts forfeited
B) gross receivables minus sales discounts taken
C) gross receivables minus sales discounts forfeited
D) gross receivables minus allowance for uncollectible accounts

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated by subtracting the allowance for uncollectible accounts from the gross receivables. This reflects the amount expected to be collected.

The Net Realizable Value of Accounts Receivable Is Calculated as ________