Before the accounts are adjusted and closed at the end of the year, Accounts Receivable has a normal balance of $510,000 and Allowance for Doubtful Accounts has a credit balance $3,000. What is the net realizable value of the accounts receivable?
A) $513,000
B) $507,000
C) $510,000
D) $504,000

Question

Quizplus · Accepted Answer

The net realizable value of the accounts receivable is calculated by subtracting the Allowance for Doubtful Accounts from the Accounts Receivable balance. Therefore, $510,000 - $3,000 = $507,000.

Before the Accounts Are Adjusted and Closed at the End