In reviewing the accounts receivable, the cash realizable value is $14,000 before the write-off of a $1,800 account. what is the cash realizable value after the write-off?

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18 July, 06:34

In reviewing the accounts receivable, the cash realizable value is $14,000 before the write-off of a $1,800 account. what is the cash realizable value after the write-off?

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Pierre Kirby · Answer 1

The net realizable value is equal to the accounts receivable less the costs. By definition, a write-off is any legitimate deduction or reduction on the value of an asset. Hence, write-off is considered as a cost. Therefore, the realizable value (RV) is:

RV = $14,000 - $1,800

RV = $12,200