Fit City estimates it will collect $3,300 of the $3,525 owed by customers.The $3,300 or the estimated collectible amount is called:

Question

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The Net Realizable Value is the amount of accounts receivable that a company expects to collect from its customers. In this case, Fit City estimates that it will collect $3,300 out of the total $3,525 owed, which is the Net Realizable Value. The Bad Debts Allowance and the Allowance for Doubtful Accounts are both accounts that are used to estimate and record the amount of uncollectible accounts, whereas the Gross Accounts Receivable is the total amount of accounts owed by customers before any allowances or estimates are made.

Fit City Estimates It Will Collect $3,300 of the $3,525