Accounts receivable are reported in the statement of financial position at their cash realizable value which is accounts receivable less the allowance for doubtful accounts.

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Accounts receivable are reported at their cash realizable value, which takes into account the estimated amount of accounts that may not be paid by customers. This estimated amount is recorded as an allowance for doubtful accounts and deducted from the total accounts receivable balance. Therefore, the net amount of accounts receivable reported on the statement of financial position is the cash realizable value.

Accounts Receivable Are Reported in the Statement of Financial Position