Eyewear Unlimited has accounts receivable of $16,000 and an allowance for doubtful accounts with a credit balance of $1,700 before a specific account of $60 is written off. What were net accounts receivable before and after the write-off?
A) $\begin{array} { | c | c | }
\hline \text { Before } & \text { After } \
\hline \$ 16,000 & \$ 14,240 \
\hline
\end{array}$
B) $\begin{array} { | c | c | }
\hline \text { Before } & \text { After } \
\hline \$ 16,000 & \$ 16,000 \
\hline
\end{array}$
C) $\begin{array} { | c | c | }
\hline \text { Before } & \text { After } \
\hline \$ 14,300 & \$ 14,240 \
\hline
\end{array}$
D) $\begin{array} { | c | c | }
\hline \text { Before } & \text { After } \
\hline \$ 14,300 & \$ 14,300 \
\hline
\end{array}$

Question

Eyewear Unlimited has accounts receivable of $16,000 and an allowance for doubtful accounts with a credit balance of $1,700 before a specific account of $60 is written off. What were net accounts receivable before and after the write-off?
A) $\begin{array} { | c | c | } 
\hline \text { Before } & \text { After } \
\hline \$ 16,000 & \$ 14,240 \
\hline
\end{array}$
B) $\begin{array} { | c | c | } 
\hline \text { Before } & \text { After } \
\hline \$ 16,000 & \$ 16,000 \
\hline
\end{array}$
C) $\begin{array} { | c | c | } 
\hline \text { Before } & \text { After } \
\hline \$ 14,300 & \$ 14,240 \
\hline
\end{array}$
D) $\begin{array} { | c | c | } 
\hline \text { Before } & \text { After } \
\hline \$ 14,300 & \$ 14,300 \
\hline
\end{array}$

Quizplus · Accepted Answer

Before the write-off, net accounts receivable is $16,000 - $1,700 = $14,300. After writing off $60, the allowance for doubtful accounts decreases by $60, but net accounts receivable remains $14,300 because both accounts receivable and allowance decrease by the same amount.

Eyewear Unlimited Has Accounts Receivable of $16,000 and an Allowance Before After $16,000$14,240\begin{array} { | c | c | } \hline \text { Before } & \text { After } \\\hline \$ 16,000 & \$ 14,240 \\\hline\end{array} Before $16,000​ After $14,240​​

Eyewear Unlimited Has Accounts Receivable of $16,000 and an Allowance $\begin{array} { | c | c | } \hline \text { Before } & \text { After } \\\hline \$ 16,000 & \$ 14,240 \\\hline\end{array}$