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?
A) $16,000
B) $1,500
C) $17,500
D) $14,500

Question

Quizplus · Accepted Answer

The cash realizable value remains $16,000 because the write-off of an account does not affect the net realizable value of accounts receivable when using the allowance method.

In Reviewing the Accounts Receivable, the Cash Realizable Value Is