Question

The net realizable value of accounts receivable after a customer's account is written of is the same dollar amount before the customer's account was written off.

A. True
B. False

Answer 1

The net realizable value of accounts receivable decreases after a customer's account is written off.

Step-by-step explanation:

No, the statement is False. The net realizable value of accounts receivable after a customer's account is written off is not the same dollar amount as before the customer's account was written off.

When an account is written off, it means that the company has determined the receivable is uncollectible and removes it from its accounts receivable balance. As a result, the net realizable value decreases because the uncollectible amount is no longer included.