In the statement of financial position, companies need only report the cash (net) realizable value of accounts and notes receivable.

Question

Quizplus · Accepted Answer

Companies must report the gross amount of accounts and notes receivable on the statement of financial position, not just the cash (net) realizable value. The allowance for doubtful accounts is reported separately as a contra account to reduce the gross amount to the net realizable value.

In the Statement of Financial Position, Companies Need Only Report