On January 1, 2016, the Accounts Receivable balance was $28,100 and the balance in the Allowance for Doubtful Accounts was $3,200. On January 15, 2016 an $940 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

a) $27,160.

b) $23,960.

c) $24,900.

d) $25,840.

Question

Business

Mia

11 April, 07:53

On January 1, 2016, the Accounts Receivable balance was $28,100 and the balance in the Allowance for Doubtful Accounts was $3,200. On January 15, 2016 an $940 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

a) $27,160.

b) $23,960.

c) $24,900.

d) $25,840.

+5

Answers (1)

Know the Answer?

Stephen · Answer 1

Net Accounts receivable = $24900

so correct option is c) $24,900

Explanation:

given data

Accounts Receivable balance = $28,100

Doubtful Accounts = $3,200

uncollectible account = $940

to find out

net realizable value of accounts receivable immediately

solution

we get here first Accounts receivable that is

Accounts receivable = Accounts Receivable balance - uncollectible account ... 1

Accounts receivable = $28,100 - $940

Accounts receivable = $27160

and

allowance will be here

allowance = Doubtful Accounts - uncollectible account ... 2

allowance = $3,200 - $940

allowance = $2260

so Net Accounts receivable is

Net Accounts receivable = $27160 - $2260

Net Accounts receivable = $24900

so correct option is c) $24,900