Accounts receivable has a balance of $16 000 and the Allowance for doubtful debts has a credit balance of $1 700. What is Net accounts receivable before and after a $60 account receivable is written off?

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Quizplus · Accepted Answer

Net accounts receivable is calculated as Accounts Receivable minus Allowance for Doubtful Debts. Before the write-off, it is $16,000 - $1,700 = $14,300. Writing off $60 does not change the net accounts receivable because it reduces both accounts receivable and the allowance by the same amount, keeping the net the same at $14,300.

Accounts Receivable Has a Balance of $16 000 and the Allowance