Myra's balance of Accounts Receivable is $4,000.The balance of the Allowance account is $600 credit.Myra writes off a $150 uncollectible account.The effect on net realizable value of the receivables is that it:
A)reduces net realizable value.
B)increases net realizable value.
C)is unchanged.
D)is undeterminable.

Question

Quizplus · Accepted Answer

Writing off an uncollectible account reduces both Accounts Receivable and the Allowance for Doubtful Accounts by the same amount, leaving the net realizable value unchanged.

Myra's Balance of Accounts Receivable Is $4,000