Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current year: Accounts receivable 900,000 Allowance for doubtful accounts 45,000 Allowance for sales discounts 5,000 Allowance for sales returns 7,500 Allowance for freight 1,500 What is the net realizable value? 959,000 O 900,000 O 855,000 841 000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current year:
Accounts receivable
900,000
Allowance for doubtful accounts
45,000
Allowance for sales discounts
5,000
Allowance for sales returns
7,500
Allowance for freight
1,500
What is the net realizable value?
959,000
900,000
855,000
841,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e0d184d-c727-4b24-af72-1128a4191a44%2F98ebf907-60b6-4cd5-96df-3b52563bff95%2Fnw24fmo_processed.png&w=3840&q=75)
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