On January 1, 2014, Classic Bedding Limited's balances in the Accounts receivable account and the Allowance for uncollectible accounts were $833,000 DR and $125,000 CR, respectively.On February 1, 2014, the company gave up trying to collect from a customer and wrote off an account receivable of $3,000.What were the net carrying values of the accounts receivable before and after the writeoff?
$\begin{array}{lc}
&\text { Before } & \text { After } \
A.&\$ 833,000 & \$ 830,000 \
B.&\$ 708,000 & \$ 705,000 \
C.&\$ 708,000 & \$ 711,000 \
D.&\$ 708,000 & \$ 708,000
\end{array}$

Question

On January 1, 2014, Classic Bedding Limited's balances in the Accounts receivable account and the Allowance for uncollectible accounts were $833,000 DR and $125,000 CR, respectively.On February 1, 2014, the company gave up trying to collect from a customer and wrote off an account receivable of $3,000.What were the net carrying values of the accounts receivable before and after the writeoff? 
$\begin{array}{lc}
&\text { Before } & \text { After } \
A.&\$ 833,000 & \$ 830,000 \
B.&\$ 708,000 & \$ 705,000 \
C.&\$ 708,000 & \$ 711,000 \
D.&\$ 708,000 & \$ 708,000
\end{array}$

Quizplus · Accepted Answer

Before the write-off, the net carrying value of accounts receivable is $833,000 (debit) minus $125,000 (credit), which equals $708,000. After writing off $3,000, the accounts receivable decreases to $830,000, but the allowance for uncollectible accounts also decreases by $3,000 to $122,000, keeping the net carrying value unchanged at $708,000.

On January 1, 2014, Classic Bedding Limited's Balances in the Accounts