On 15 July Sammy Corporation's Gross Accounts Receivable had a balance of $2300 and the Allowance for Doubtful Debts had a balance of ($220). A specific account of $80 was written off on 16 July. If no other relevant transactions had taken place, what is the amount of net receivables after the write-off?

Question

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Before write-off, gross accounts receivable = $2300
Allowance for doubtful debts = ($220)
Net accounts receivable = $2080
After the write-off of $80, the gross accounts receivable balance decreases to $2300 - $80 = $2220.
The allowance for doubtful debts remains the same at ($220).
Net accounts receivable = $2220 - ($220) = $2000
Therefore, the amount of net receivables after the write-off is $2080.

On 15 July Sammy Corporation's Gross Accounts Receivable Had a Balance