How to calculate the net realizable value of accounts receivable?
Understand the Problem
The question is asking how to compute the net realizable value of accounts receivable, which involves determining the amount the company expects to collect from its receivables after considering allowances for doubtful accounts.
Answer
Full receivable balance less allowance for doubtful accounts.
The final answer is the full receivable balance less the allowance for doubtful accounts.
Answer for screen readers
The final answer is the full receivable balance less the allowance for doubtful accounts.
More Information
Net Realizable Value (NRV) ensures a company's accounts receivable are reported at their fair market value.
Sources
- How to Calculate Net Realizable Value (NRV) - Wall Street Prep - wallstreetprep.com
- Net Realizable Value of Accounts Receivable - YouTube - youtube.com
- How to calculate Net Realizable Value (NRV) | Chaser - chaserhq.com
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