[techtrooper]

The balance sheet presentation of accts recvble net of the allowance for doubtful accounts has the effect of stating accounts receivable at.. A) original cost, B) net realizable value,m C) market value D) lower cost or market

[Just Looking]

What they are talking about here is that a company will have accounts receivable on their books that will most likely not be collected. They can use a number of ways to determine this amount, including past history and aging reports. They determine the amount most likely to not be collectible and subtract them for the accounts receivable to show the amount of receivables they expect to collect, that is the net realizable value of accounts receivable.