The valuation of accounts receivables at gross receivables less anticipated future bad debts is known as:

Question

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Fair value refers to the valuation of assets or liabilities based on market value or the value that would be received in a current transaction between willing parties. In the case of accounts receivable, fair value is calculated by subtracting anticipated future bad debts from gross receivables. This reflects the amount that the company could reasonably expect to receive in exchange for the receivables if sold on the open market.

The Valuation of Accounts Receivables at Gross Receivables Less Anticipated