Question

Prior to the write off of a $500 customer account, Athena Company had the following account balances: Accounts receivable $19,600 Allowance for doubtful accounts 1,000 The net realizable value of the Accounts Receivable before and after the write-off was:

Answer 1

Net accounts receivable Before $18,600 and After $18,600

Step-by-step explanation:

solution

we know that here

net accounts receivable before write-off

Accounts Receivable = $19,600

and Allowance for doubtful debt = $1,000

so Net accounts receivable = $19,600 - $1,000 = $18,600

so

Journal Entry for write off is here

Allowance for doubtful Accounts = $500

Accounts Receivable = $500

and

Net accounts receivable after write off is

Accounts Receivable= $19,100

and

Allowance for doubtful debt= $500

so Net accounts receivable = $19,100 - $500

Net accounts receivable = 8,600

so Net accounts receivable Before $18,600 and After $18,600