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During the Year, Brownie Inc, Who Uses the Allowance Method

Question 345

Multiple Choice

During the year, Brownie Inc, who uses the allowance method, made an entry to write off a $2,000 uncollectible account.Before this entry was posted, the balance in accounts receivable was $40,000 and the balance in the allowance account was $3,500.The net realizable value of accounts receivable after the write-off entry was


A) $40,000.
B) $38,500.
C) $38,000.
D) $36,500.

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