Asked by Jaynese Jones on Jun 17, 2024
Verified
The realizable value refers to the accounts receivable amount expected to be received.
Realizable Value
The estimated amount that an asset can be sold for, less any selling costs, at the end of its useful life.
Accounts Receivable
Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.
- Explain how changes in the allowance for doubtful accounts impact the realizable value of accounts receivable.
Verified Answer
LW
Lemar WhiteJun 19, 2024
Final Answer :
True
Explanation :
Realizable value is the amount of accounts receivable that a company expects to collect from its customers. It takes into account any discounts, returns, or bad debts that may occur.
Learning Objectives
- Explain how changes in the allowance for doubtful accounts impact the realizable value of accounts receivable.
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