In reviewing the accounts receivable the cash realizable value is $14000 before the write-off of a $1800 account. What is the cash realizable value after the write-off?
A) $1800
B) $12200
C) $14000
D) $15800

Question

Quizplus · Accepted Answer

The cash realizable value remains $14,000 after the write-off because the write-off of an account receivable does not affect the total cash realizable value; it merely adjusts the accounts receivable and allowance for doubtful accounts balances.

In Reviewing the Accounts Receivable the Cash Realizable Value Is