Question

Samuel, Inc. has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account balance of $1,600, what is the amount of its net accounts receivable

Answer 1

Net accounts receivable before write-off = $244,000

Net accounts receivable after write-off = $229600

Step-by-step explanation:

given data

Accounts Receivable = $260,000

Allowance for Doubtful Accounts = $16,000

writes-off customer account balance = $1,600

solution

we get her Net accounts receivable that is express as

Net accounts receivable = Accounts Receivable - Allowance for Doubtful Accounts .....................1

so here before write-off Net accounts receivable is

Net accounts receivable = $260,000 - $16,000

Net accounts receivable = $244,000

and

after write-off

writes-off a customer account balance entry as

Allowance Doubtful Account = $1,600 Debit

Accounts Receivable = $1,600 Credit

so

Net accounts receivable after write-off

Net accounts receivable = $244,000 - ($16000 - 1600 )

Net accounts receivable = $229600