Accounts Receivable Have a Face Value of $10,000 and a Present

question 20

Essay

Accounts receivable have a face value of $10,000 and a present value of $9,000 on December 31, 2018. At what amount would the accounts receivable be measured on the December 31, 2018 balance sheet?

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Definitions:

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Discount

A reduction applied to the face value of a product, service, or security to encourage purchase or investment.

Net 60

A payment term indicating that payment is due 60 days after the invoice date.