Asked by Christyon Pulley on Jun 30, 2024
Verified
The carrying amount of accounts receivable
A) is the amount at which the receivables less the allowance for doubtful accounts are presented on the statement of financial position.
B) reflects the sum of accounts receivable and the allowance for doubtful accounts.
C) is the amount at which the receivables are presented on the statement of financial position.
D) reflects management's estimate of the receivables that will ultimately not be collected after expected credit losses.
Allowance for Doubtful Accounts
a contra-asset account that estimates the portion of accounts receivable that may not be collectible.
- Understand the concept and calculation of the carrying amount of accounts receivable.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
A
Explanation :
The carrying amount of accounts receivable is the net amount expected to be collected, which is calculated as the total accounts receivable minus the allowance for doubtful accounts. This net amount is what is presented on the statement of financial position.
Learning Objectives
- Understand the concept and calculation of the carrying amount of accounts receivable.