The following item appeared on the December 31, 2008, balance sheet of The Cyclery: Receivables, less allowance of $1,100 …..$18,000
On January 5, 2009, owner Sean Viesters wrote off a $1,000 customer account. After the write- off, what is the value of the net receivables?

Question

Quizplus · Accepted Answer

The write-off of a specific account does not affect the net receivables because the allowance for doubtful accounts already accounts for potential uncollectible amounts. Therefore, the net receivables remain at $18,000.

The Following Item Appeared on the December 31, 2008, Balance