The following data are from the company's records for 2013:

-Refer to the Ace Computing Company. The net realizable value of receivables appearing on the 2013 balance sheet will amount to

Question

The following data are from the company's records for 2013:
 
-Refer to the Ace Computing Company. The net realizable value of receivables appearing on the 2013 balance sheet will amount to

Quizplus · Accepted Answer

The net realizable value of receivables is the amount of accounts receivable that the company realistically expects to collect from its customers. To calculate this, we need to subtract the allowance for doubtful accounts from the total accounts receivable. 
From the given data, we can see that the allowance for doubtful accounts is $1,000 and the total accounts receivable is $40,648. 
Therefore, the net realizable value of receivables is:
$40,648 - $1,000 = $39,648. 
Thus, the best choice is B.

The Following Data Are from the Company's Records for 2013