Question

On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the...

On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,800. On January 15, Year 1, an $800 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

Multiple Choice

a) $33,400

b) $34,200

c) $36,200

d) $35,000

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Homework Answers

Answer #1
Correct option is: b. $34,200
Workings:
Balnce after write - off:
Accounts receivables ($37000 - $800) = $       36,200
Less: Allowance for doubtful accounts ($2800 - $800) = $         2,000
Net realizable value = $       34,200

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