Mercury Holdings estimates it will collect $8,930 of the $10,000 owed by customers. The difference of $1,070 represents the:
A) Gross Accounts Receivable.
B) the Net Realizable Value.
C) Allowance for Doubtful Accounts.
D) Value of the Current Unpaid Receivables.

Question

Quizplus · Accepted Answer

The difference of $1,070 represents the Allowance for Doubtful Accounts, which is an estimate of the receivables that the company does not expect to collect.

Mercury Holdings Estimates It Will Collect $8,930 of the $10,000