When a customer's account is written off:
A) net realizable value of the Accounts Receivable remains the same.
B) net realizable value of the Accounts Receivable decreases.
C) net realizable value of the Accounts Receivable increases.
D) None of the above

Question

Quizplus · Accepted Answer

Writing off a customer's account as uncollectible does not change the net realizable value of Accounts Receivable because this action is typically taken after an allowance for doubtful accounts has already been established to account for such losses.

When a Customer's Account Is Written Off