Question

Accounts receivable are reported at:

1. net realizable value.

2. marketing value.

3. weighted average cost.

4. historical cost.

Answer 1

1. Net Realizable Value

1) Accounts Receivable is the payment which the company will receive from its customers who have purchased its goods & services on Account ie Credit basis.

2) Account Receivable are Current Assets company and Recorded under Current Asset in Balancesheet,.

3)On a company's balance sheet, Accounts receivable is reported as Net Accounts receivable . That means accounts receivable reduce by the value of the allowance for doubtful or uncollectible accounts which is also called as Net realizable value