A company has the following balances on December 31, 2021, after year-end adjustments: Accounts Receivable = $62,300; Allowance for Uncollectible Accounts = $6,500.Calculate the net realizable value of accounts receivable t realizable
Answered on
The net realizable value (NRV) of the accounts receivable is calculated by subtracting the allowance for uncollectible accounts from the total amount of accounts receivable. The allowance for uncollectible accounts is an estimate of the accounts receivable that the company does not expect to collect.
Here's the calculation: Net Realizable Value of Accounts Receivable = Accounts Receivable - Allowance for Uncollectible Accounts
Given the balances: Accounts Receivable = $62,300 Allowance for Uncollectible Accounts = $6,500
Performing the calculation: Net Realizable Value of Accounts Receivable = $62,300 - $6,500 Net Realizable Value of Accounts Receivable = $55,800
So the net realizable value of the accounts receivable is $55,800 as of December 31, 2021.