ABC Corp. has a balance of $625,000 in Accounts Receivable. The balance in Allowance for Doubtful...

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ABC Corp. has a balance of $625,000 in Accounts Receivable. The balance in Allowance for Doubtful Accounts is $25,000. What i

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Answer 1

Answer #1

Net realizable value is the cash amount that a company expects to receive. In the case of accounts receivable, net realizable value can also be expressed as the debit balance in the asset account Accounts Receivable minus the balance in Allowance for Doubtful account.

ABC Corp's net realizable value of their A/R = Balance of Account Receivable Account - Balance of Allowance for Doubtful Account

= $625,000 - $25,000

= $600,000

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Answer 2

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ABC Corp. has a balance of $625,000 in Accounts Receivable. The balance in Allowance for Doubtful...