What is net realizable value? How is net realizable value affected when a receivable is written off under the allowance method?
What will be an ideal response
Net realizable value is the net value a company expects to collect from its accounts receivable. Accounts Receivable less Allowance for Bad Debts equals net realizable value. The entry to write off a receivable reduces the amounts of the Allowance for Bad Debts and Accounts Receivable accounts, but does not affect the net realizable value shown on the balance sheet. This is because both accounts are reduced by the amount of the write-off.
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A. extraversion B. agreeableness C. neuroticism D. openness
Preferred stock and bonds are similar because
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