The carrying amount of accounts receivable
A)is the amount at which the receivables less the allowance for doubtful accounts are presented on the statement of financial position.
B)reflects the sum of accounts receivable and the allowance for doubtful accounts.
C)is the amount at which the receivables are presented on the statement of financial position.
D)reflects management's estimate of the receivables that will ultimately not be collected after expected credit losses.

Question

Quizplus · Accepted Answer

The carrying amount of accounts receivable is the net amount expected to be collected, which is calculated as the total accounts receivable minus the allowance for doubtful accounts. This net amount is what is presented on the statement of financial position.

The Carrying Amount of Accounts Receivable