Sheena Company has accounts receivable of $13,000, with a present value of $10,000 on December 31, 2018. At what amount would the accounts receivable be measured on the December 31, 2018 balance sheet?
A)$2,000
B)$13,000
C)$10,000
D)($2,000)

Question

Quizplus · Accepted Answer

The accounts receivable will be measured at their present value of $10,000, which reflects the time value of money and the uncertainty of collection. Therefore, the accounts receivable would be measured at $10,000 on the balance sheet.

Sheena Company Has Accounts Receivable of $13,000, with a Present