After the accounts are adjusted at the end of the fiscal year,Accounts Receivable has a balance of $430,000 and Allowance for Doubtful Accounts has a balance of $30,000.What is the net realizable value of the receivables?
A)$30,000
B)$460,000
C)$430,000
D)$400,000

Question

Quizplus · Accepted Answer

The net realizable value of the receivables is calculated by subtracting the allowance for doubtful accounts from the accounts receivable balance. Therefore, the net realizable value is $400,000 ($430,000 - $30,000). Thus, option D is the correct answer.

After the Accounts Are Adjusted at the End of the Fiscal