After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?
A) $51,000
B) $289,000
C) $340,000
D) $391,000

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable is the difference between the accounts receivable balance and the allowance for doubtful accounts balance. Therefore, the net realizable value is $289,000 ($340,000 - $51,000).

After the Accounts Are Adjusted and Closed at the End