Accounts receivable are shown on the balance sheet at their: Net realizable value Present value Trade...

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Accounts receivable are shown on the balance sheet at their: Net realizable value Present value Trade value Book value If a c

business accounting

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Answer 1

Answer #1

Account receivable is an asset for teh company which can be converted into cash within 12 months.

Account receivable is a current asset which is shown on asset side of balance sheet.

As per generally accepted accounting principles businesses must report account receivable at their net value i.e. net of allowance for doubtful account.

Bussinesses add up the total amount owed by customers than deduct share of account receivable that is estimated to be uncollected.

Thus, Account receivable is shown at NET REALIZABLE VALUE on balance sheet.

Account receivable
Less: Allowance for doubtful account
Net realizable value

Answer A

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