contestada

Accounts Receivable has a $2,300 balance, and the Allowance for Doubtful Accounts has a $200 credit balance. An $80 account receivable is written-off. Net receivables (net realizable value) after the write-off equals ______. Multiple choice question. $2,100 $2,220 $2,020 $2,180

Respuesta :

Net receivables (net realizable value) after the write-off equals option (a) i.e, $2,100.

Given that $80 has been written off, accounts Receivable have a $2,300 balance, and the allowance for Doubtful accounts has a $200 credit balance.

The balance must be deducted from the accounts receivable while also being deducted from the account credit balance. We may construct the following equation to calculate the net receivables:

N=(R-W)-(C-W)

where;

N = Net realizable value

R = Accounts receivable

W = Written off accounts receivables

C = Credit balance

In our case;

N=unknown

R=$2,300

W=$80

C=$200

replacing;

N=(2,300₋80)₋(200₋80)

N=(2,220₋120)=2,100

N=$2,100

The net realizable value after the write-off equals $2,100.

To know more about net realizable value refer to:  https://brainly.com/question/13488849

#SPJ4

Otras preguntas

Q&A Education