The net realizable value of the Accounts Receivable is $21,000 before the write off of a $1,500 account.What is the net realizable value after the write off?
A)$22,500
B)$21,000
C)$19,500
D)$18,000

Question

Quizplus · Accepted Answer

The net realizable value of accounts receivable remains the same at $21,000 after the write-off because the write-off reduces both the accounts receivable and the allowance for doubtful accounts by the same amount, leaving the net realizable value unchanged.

The Net Realizable Value of the Accounts Receivable Is $21,000