Ask Question
23 March, 20:29

Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as worthless an account receivable from Burton Company of $1,300. The net realizable value of the accounts receivable before and after the write-off were:

+3
Answers (1)
  1. 23 March, 23:42
    0
    Net realizable value before write off and after write off remains the same. since the write off is recorded as a debit to uncollectible account and credit to accounts receivables account. The net realizable value is $ 290,500.

    Explanation:

    Net Realizable value before write off =

    Accounts Receivable - Allowance for doubtful accounts

    $ 310,000 - $ 19,500 = $ 290,500

    The recording for the write off is

    Allowance for doubtful accounts Debit $ 1,300

    Accounts receivables Credit $ 1,300

    Balances after write off are

    Accounts Receivable $ 310,000 - $ 1,300 = $ 308,700

    Allowance for doubtful accounts $ 19.500 - $ 1,300 = $ 18,200

    Net realizable value after write off is $ 290,500

    There is no change in the net realizable value of receivables
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as worthless an ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers