Accounts receivable has a balance of $8000 and the Allowance for doubtful debts has a credit balance of $450.The allowance method is used.What is the net realisable value after a $170 account receivable is written off?
A)$7550
B)$7720
C)$7380
D)$8000

Question

Quizplus · Accepted Answer

The net realizable value is the accounts receivable balance minus the allowance for doubtful debts. After the $170 account receivable is written off, the accounts receivable balance becomes $7,830 ($8,000 - $170). The allowance for doubtful debts remains at $450. Therefore, the net realizable value is $7,830 - $450 = $7,380.

Accounts Receivable Has a Balance of $8000 and the Allowance