The cash realizable value is the difference between the

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The cash realizable value is the amount of accounts receivable that is expected to be collected. It is calculated by subtracting the allowance for doubtful accounts balance from the accounts receivable balance. This represents the amount of money the company expects to receive in cash for its sales, after accounting for any customers who are unlikely to pay. Option B is incorrect because net sales is a measure of revenue, not cash collected. Option C is incorrect because bad debt expense is an estimate of uncollectible accounts, not a measure of cash collected. Option D is incorrect because bad debt expense is not included in the calculation of the cash realizable value.

The Cash Realizable Value Is the Difference Between the