The net realizable value of accounts receivable is the difference between accounts receivable and:

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is the amount that a company expects to collect after accounting for the expected amount of uncollectible accounts. The allowance for uncollectible accounts (also known as an allowance for doubtful accounts) reflects the estimated amount of accounts receivable that may not be collected. Therefore, the difference between accounts receivable and the allowance for uncollectible accounts is the net realizable value of accounts receivable.

The Net Realizable Value of Accounts Receivable Is the Difference