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Pachacha [2.7K]
3 years ago
15

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?
Business
1 answer:
mrs_skeptik [129]3 years ago
8 0

Answer:

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

<u>so the net receivable keeps at the same value</u>

<u></u>

accounts receivable                            2,420

Allowance for Uncollectible Accounts (420)

                                    net receivable  2,000

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