Question

On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,800. On January 15, Year 1, an $800 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

Answer 1

$33,400

Step-by-step explanation:

Accounts Receivable $37,000

Less: uncollectible accounts written off (800)

Allowance for Doubtful Accounts ($2,800)

Net realizable value of accounts receivable $33,400

Therefore the net realizable value of accounts receivable immediately after the write-off is $33,400

Answer 2

The net realizable value of accounts receivable immediately after the write-off is $33,400

Step-by-step explanation:

Net realizable value of accounts receivable is the Amount that the Company expects to receive from its Account Receivables after accounting for Debts Written Off and Allowances for Doubtful debts

Net realizable value of accounts receivable:

Accounts Receivable $37,000

Less Uncollectible accounts written-off ($800)

Less Allowance for Doubtful Accounts ($2,800)

Net realizable value of accounts receivable $33,400