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Texter Company Has a Balance of $65,000 in Accounts Receivable

Question 2

Multiple Choice

Texter Company has a balance of $65,000 in Accounts Receivable and a $5,000 credit balance in Allowance for Doubtful Accounts. If a specific customer's account with a balance of $500 is written off as uncollectible, the cash (or net) realizable value of the accounts receivable will be:


A) $64,500.
B) $60,000.
C) $65,500.
D) $60,500.

Correct Answer:

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