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svlad2 [7]
3 years ago
12

On January 1, Year 1, the Accounts Receivable balance was $20,100 and the balance in the Allowance for Doubtful Accounts was $1,

700. On January 15, Year 1, an $490 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?
Business
1 answer:
wel3 years ago
4 0

Answer:

$18,400

Explanation:

A/R                                                               $20,100

Less: Allowance for doubtful accounts         ($1,700)

net realizable value of A/R                             $18,400    

The write off amount is already included in allowance for doubtful accounts on provision basis therefore it can't be separately deducted again.                                                

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