The amount of accounts receivable that is actually expected to be collected is known as:
A)Net realizable value.
B)Uncollectible accounts expense.
C)The present value of accounts receivable.
D)Allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

Net realizable value is calculated as the general ledger accounts receivable balance (what has been billed to customers, but not yet collected) minus allowance for doubtful accounts (the estimate of what a company believes is uncollectible).

The Amount of Accounts Receivable That Is Actually Expected to Be