Answer:
$960,000
Explanation:
The net realizable value is the total cash that the company will expect to receive from their accounts receivable. The net realizable value (NRV) can be determined by:
NRV = total accounts receivable - allowance for doubtful accounts = $1,000,000 - $40,000 = $960,000
Answer:
The net realizable value from receivables is $960,000
Explanation:
Net realizable value of accounts receivable as the name indicates is the amount of cash that be reasonably realized from the balance of accounts receivable the company has.
The net realizable value is usually the value of accounts receivable less estimated allowance for doubtful account.
The net realizable value from the receivables is computed thus:
Accounts receivable balance $1,000,000
Allowance for doubtful account ($40,000)
net realizable value of receivables $960,000
