In reviewing the accounts receivable, the cash realizable value is $16,000 before the write-off of a $1,500 account. What is the cash realizable value after the write-off?

Question

Quizplus · Accepted Answer

The cash realizable value remains the same at $16,000 after the write-off because the write-off does not affect the net realizable value of accounts receivable. The allowance for doubtful accounts already accounted for potential uncollectible amounts.

In Reviewing the Accounts Receivable, the Cash Realizable Value Is