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Moore, inc. had accounts receivable of $25,000 and an allowance for uncollectible accounts of $1,700 (credit)...

Moore, inc. had accounts receivable of $25,000 and an allowance for uncollectible accounts of $1,700 (credit) just before writing off as worthless an account receivable from Stuart company $150. The net realizable values of the accounts receivable before and after the write-off were:
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Answer #1

Net realizable values of the accounts receivable before write-off is $23300

Net realizable values of the accounts receivable after write-off is $23450

Explanation:

Calculation of Net realizable values of the accounts receivable before write-off :

Account Receivable = $25000

Less: Credit Balance in allowance for Uncollectible account = $1700

Net realizable values of the accounts receivable before write-off = $25000 - $1700 = $23300

Calculation of Net realizable values of the accounts receivable after write-off :

Credit Balance in allowance for Uncollectible account = $1700

Bad debts expense = $150

Net balance of allowance for Uncollectible account after write-off = $1700 - $150 = $1550

Calculation:

Account Receivable = $25000

Less: Net Balance in allowance for Uncollectible account = $1550

Net realizable values of the accounts receivable after write-off = $25000 - $1550 = $23450

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