Answer:
The net realizable value of the accounts receivable amounts to $613,690
Explanation:
NRV stands for Net Realizable value, which is defined as the cash amount that the firm expects to receive.
The net realizable value of the accounts receivable is computed as:
Net realizable value of the accounts receivable = Balance of Accounts Receivable - Allowance for Doubtful Accounts
where
Balance of Accounts Receivable amounts to $632,338
Allowance for Doubtful Accounts amounts to $18,648
Putting the values above:
Net realizable value of the accounts receivable = $632,338 - $18,648
Net realizable value of the accounts receivable = $613,690
