The following information was obtained from the company's records for the year ended December 31:

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

Question

The following information was obtained from the company's records for the year ended December 31:
 
-Refer to Abbot Safe & Lock. 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 accounts receivable balance. In this case, the balance of accounts receivable is $310,000 and the allowance for doubtful accounts is $20,000, resulting in a net realizable value of $290,000. Therefore, the answer is B.

The Following Information Was Obtained from the Company's Records for the Year