The net realizable value of a company's Accounts Receivables is:
A) increased at the time of a specific write-off.
B) decreased at the time of a specific write-off.
C) unchanged at the time of a specific write-off.
D) the guaranteed amount the company will collect from its customers.

Question

Quizplus · Accepted Answer

The net realizable value of a company's Accounts Receivables is unchanged at the time of a specific write-off because the allowance for doubtful accounts, which is used to estimate uncollectible accounts, has already accounted for this potential loss.

The Net Realizable Value of a Company's Accounts Receivables Is