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7 February, 06:48

Accounts Receivable has a debit balance of $ 2 comma 500 , and the Allowance for Uncollectible Accounts has a credit balance of $ 500. A $ 80 account receivable is written off. What is the amount of net receivables (net realizable value) after the write-off?

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  1. 7 February, 06:54
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    a write-off using the allowance method will not change the net receivables.

    Explanation:

    accounts receivable 2,500

    Allowance for Uncollectible Accounts (500)

    net receivable 2,000

    a write-off using the allowance method will not change the net receivables.

    after the write-off both, Ar and the allowance decrease by 80

    so the net receivable keeps at the same value

    accounts receivable 2,420

    Allowance for Uncollectible Accounts (420)

    net receivable 2,000
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