The face amount of accounts receivable for Rio Inc. is $20,000. It was estimated that 5% of the accounts will not be collected, cash discounts of $500 will be exercised, and $200 of sales returns will be experienced. The net realizable value of accounts receivable is
A)$19,500
B)$19,300
C)$20,000
D)$18,300

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The Answer of The face amount of accounts receivable for Rio Inc. is $20,000. It was estimated that 5% of the accounts will not be collected, cash discounts of $500 will be exercised, and $200 of sales returns will be experienced. The net realizable value of accounts receivable is
A)$19,500
B)$19,300
C)$20,000
D)$18,300

The Face Amount of Accounts Receivable for Rio Inc