What would be incorrect about reporting accounts receivable in the balance sheet?
A)Presenting accounts receivable net of allowance for doubtful accounts.
B)Presenting accounts receivable at estimated net realizable value.
C)Presenting accounts receivable less bad debt expense and write-offs.
D)Presenting accounts receivable at gross amount,less allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Presenting accounts receivable less bad debt expense and write-offs is incorrect because bad debt expense and write-offs affect the income statement, not the balance sheet presentation of accounts receivable. Accounts receivable should be shown at the gross amount less any allowance for doubtful accounts to reflect the estimated net realizable value.

What Would Be Incorrect About Reporting Accounts Receivable in the Balance