Accounts receivable has a debit balance of $ 3 comma 000, and the allowance for uncollectible accounts has a credit balance of $ 500. a $ 100 account receivable is written off. what is the amount of net receivables (net realizable value) after the write-off?

$ 2,500

Explanation:

After the write-off, the amount of net receivables ( Net realizable value = Accounts Receivable - Allowance )  is $ 2,500

The net value does not change, as the journal entry to record the write-off is as follows:

Dr    Accounts Receivable                                            100

Cr     Allowance for Uncollectible Accounts                    100

Remember that under the Allowance Method, the loss was previously recorded in the period when allowance was estimated ( $ 500 )

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