Accounts Receivables are valued at Net Realizable Value and reported on the balance sheet. Net Realizable Value is total accounts receivables minus the allowance for doubtful accounts, sales discounts, returns and allowances.
Example:
Adequate Disclosure reports accounts receivable of $100,000, at the end of 201X. Adequate Disclosure also has an allowance for doubtful account balance of $19,000 and sales discounts of $6,000. What is the total amount of Accounts Receivable be reported at on the Balance Sheet?
