Under the allowance method, the net realizable value of receivables is the same both before and after an account has been written off.

Name: Under the allowance method, the net realizable value of receivables is the same both before and after an account has been written off.
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Under the allowance method, the net realizable value of receivables remains unchanged when an account is written off because the write-off is offset by a reduction in the allowance for doubtful accounts.

Under the Allowance Method, the Net Realizable Value of Receivables