Accounts Receivable company, balance, already

hardwork24

On a company’s balance sheet, is it assumed that Accounts Receivable is listed at a value, already reduced by Allowance for Doubtful Accounts?

luda002

It will usually say the word net if it includes allowances for doubtful accounts. Net receivable or net trade receivables, etc. Otherwise, I don’t think it includes allowances.

HuskyGrad2010

You sure? I read somewhere that it automatically includes the reduction of Accts Rec from Allowance for Doubtful Accts. Maybe I’m crazy, but it’s definitely good to know one way or another.

Kiakaha

I think the adjustment is always included. Quoting schweser “Accounts receivable are reported at net realizable value (based on management’s estimates of collectibility).
” under LOS 33e