When valuing accounts receivable on the balance sheet the reported value makes allowances for all of the following except:
A)bad debts.
B)present value.
C)price adjustments.
D)potential returns.

Question

Quizplus · Accepted Answer

The reported value of accounts receivable on the balance sheet typically accounts for bad debts, price adjustments, and potential returns through allowances but does not adjust for the present value of receivables, as they are expected to be collected in the short term and thus not significantly discounted for time value of money.

When Valuing Accounts Receivable on the Balance Sheet the Reported