Ask Question
25 November, 04:48

Accounts Receivable has a balance of $5,000 , and the Allowance for Bad Debts has a credit balance of $420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $140 account receivable is written off?

+2
Answers (1)
  1. 25 November, 07:28
    0
    Net realizable value of Accounts Receivable is $4,580

    Explanation:

    Balance in allowance for uncollectible account = Balance before write off - Account written off

    =$420 - $140

    =$280

    Net realizable value of accounts receivable is:

    Particular Amount

    Accounts Receivable balance $5000

    Less: Account written off $140

    Balance after write off $4860

    Less: Allowance for uncollectible

    account from step 1 $280

    Net realizable value $4,580
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Accounts Receivable has a balance of $5,000 , and the Allowance for Bad Debts has a credit balance of $420. The allowance method is used. ...” 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