Question

On January 1, 2011, the accounts receivable balance was $19,500, and the credit balance in the allowance for doubtful accounts was $1,430. On January 15, 2011, a $430 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

A. $20,930
B. $19,070
C. $18,070
D. $19,500

Answer 1

The net realizable value of accounts receivable immediately after the write-off is $19,070.

Step-by-step explanation:

To calculate the net realizable value of accounts receivable after a write-off, we need to subtract the written-off amount from the total accounts receivable balance.

The accounts receivable balance on January 1, 2011, was $19,500, and the credit balance in the allowance for doubtful accounts was $1,430. When the $430 uncollectible account was written-off on January 15, 2011, the allowance for doubtful accounts decreased by $430 as well.

Therefore, the net realizable value of accounts receivable immediately after the write-off is $19,500 - $430 = $19,070.