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On December 31, 2020, Hockey Inc. establishes an allowance for doubtful accounts of 2% of its...

On December 31, 2020, Hockey Inc. establishes an allowance for doubtful accounts of 2% of its accounts receivable balance of $150,000. Hockey Inc. decides on March 15, 2021, not to pursue collection of Gretsky’s $1,000 account. The likelihood of collection does not support further collection efforts.

What is the net realizable value (NRV) of accounts receivable before and after the write-off of the Gretsky account?

None of the other answer choices is correct.

NRV Before Write-off: $147,000

NRV After Write-off: $148,000

NRV Before Write-off: $147,000

NRV After Write-off: $146,000

NRV Before Write-off: $147,000

NRV After Write-off: $147,000

NRV Before Write-off: $150,000

NRV After Write-off: $149,000
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