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6. Accounts Receivable has a balance of $32,000, and Allowance for Bad Debts has a credit...

6. Accounts Receivable has a balance of $32,000, and Allowance for Bad Debts has a credit balance of $3,500. The allowance method is used. What is the net realizable value of Accounts Receivable before and after a $2,100 account receivable is written off? Drawing T-accounts will assist you. A) $26,400; $30,600 B) $26,400; $26,400 C) $28,500; $26,400 D) $28,500; $28,500

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Answer #1
Answer is C. $ 28500
Explanation:
Accounts receivable (Net balance after write off)
Accounts receivable (Gross): 29900 (32000-2100)
Less: Allowance for bad debts: 1400 (3500-2100)
Accounts receivable (Net) 28500
Accounts receivable
Balance 32,000 Allowance for bad debts 2,100
Balance 29,900
Allowance for bad debts
Accounts receivable 2,100 Balance 3,500
Balance 1400
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