1.
On January 1, 2011, the Accounts Receivable balance was $24,500 and the credit balance in the
Allowance for Doubtful Accounts was $1,530. On January 15, 2011 a $530 uncollectible account
was written-off. The net realizable value of accounts receivable immediately after the write-off
is:
On January 1, 2011, the Accounts Receivable balance was $24,500 and the credit balance in the
Allowance for Doubtful Accounts was $1,530. On January 15, 2011 a $530 uncollectible account
was written-off. The net realizable value of accounts receivable immediately after the write-off
is:
Solution
Revised Balance of Accounts receivable (Gross): Balance in Accounts receivable (Gross) 24500
Less: Amount written off -530 Revised Balance of Accounts receivable (Gross): 23970 Revised
balance of Allowance for doubtful Accounts: Balance before write off 1530 Less: Amoun
written off -530 Revised balance of Allowance for Doubtful Accounts: 1000 NET
REALIZABLE VALUE OF ACCOUNTS RECEIVABLE: Revised Balance of Accounts
receivable (Gross) 23970 Less: Revised balance of Allowance for doubtful accounts -1000 Net
realizable value of Accounts receivable 22970