Snow Productions, Inc. reports a balance of $28,000 in Accounts Receivable and $3,450 in the Allowance for Uncollectible Accounts. What is the net realizable value of the receivables?

Question

Quizplus · Accepted Answer

The net realizable value of the receivables is calculated by subtracting the allowance for uncollectible accounts from the accounts receivable balance. Therefore, the net realizable value of the receivables is $28,000 - $3,450 = $24,550, which is the closest answer option.