Canadian practice is that accounts receivable be valued using which of the following methods?
A)Gross payments
B)Present value less allowances
C)Net realizable value
D)Market value

Question

Quizplus · Accepted Answer

Canadian practice is to value accounts receivable using the net realizable value method, which is the estimated amount that will be collected from customers after deducting any allowances for doubtful accounts. This method reflects a more conservative estimate of the value of accounts receivable, as it takes into account the likelihood that some customers may not pay their full balance.

Canadian Practice Is That Accounts Receivable Be Valued Using Which