Answer:
Net realizable value before write off and after write off remains the same. since the write off is recorded as a debit to uncollectible account and credit to accounts receivables account. The net realizable value is $ 290,500.
Explanation:
Net Realizable value before write off =
Accounts Receivable - Allowance for doubtful accounts
$ 310,000 - $ 19,500 = $ 290,500
The recording for the write off is
Allowance for doubtful accounts Debit $ 1,300
Accounts receivables Credit $ 1,300
Balances after write off are
Accounts Receivable $ 310,000 - $ 1,300 = $ 308,700
Allowance for doubtful accounts $ 19.500- $ 1,300 = <u> $ 18,200</u>
Net realizable value after write off is $ 290,500
There is no change in the net realizable value of receivables
