Ask Question
29 May, 11:34

On January 1, Year 2, the Accounts Receivable balance was $30,600 and the balance in the Allowance for Doubtful Accounts was $3,700. On January 15, Year 2, an $1,070 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

+2
Answers (1)
  1. 29 May, 15:19
    0
    The net will be the same as January 1st, because the wri-off makes both account decrease. As long as the write-off doesn't surpass the allowance, the net AR will not change for write-off.

    Net value at Jan 15th 26,900

    Explanation:

    Verification:

    Balance at jan 1st

    account receivable 30,600

    Allowance 3,700

    Net value at Jan 1st 26,900

    Jan 15th

    allowance debit 1,070

    account receivable credit 1,070

    Balance at Jan 15th

    account receivable 29,530

    Allowance 2,630

    Net value at Jan 15th 26,900
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On January 1, Year 2, the Accounts Receivable balance was $30,600 and the balance in the Allowance for Doubtful Accounts was $3,700. On ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers