Under the allowance method for uncollectible accounts, the net realizable value of receivables is the same both before and after an account has been written off.

Question

Quizplus · Accepted Answer

The net realizable value is calculated as accounts receivable minus the allowance for doubtful accounts, and an account is written off when it is deemed uncollectible. Therefore, the net realizable value is already reduced by the amount of the uncollectible account before it is written off, and it remains the same after the write-off.

Under the Allowance Method for Uncollectible Accounts, the Net Realizable