The following data are from the company's records for the year ended December 31:

-Refer to A2Z Events. What amount will the company show on its year-end balance sheet for the net realizable value of its accounts receivable?

Question

The following data are from the company's records for the year ended December 31:
 
-Refer to A2Z Events. What amount will the company show on its year-end balance sheet for the net realizable value of its accounts receivable?

Quizplus · Accepted Answer

The net realizable value of accounts receivable is calculated by subtracting the allowance for doubtful accounts from the total accounts receivable. The allowance for doubtful accounts is given as $55,000, so we need to subtract this from the accounts receivable balance of $410,000 to get the net realizable value of $355,000.

The Following Data Are from the Company's Records for the Year