Under the allowance method, the cash realizable value of receivables is the same both before and after an account has been written off.

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The cash realizable value of receivables is the total amount of receivables less the estimated allowance for uncollectible accounts. When an account is written off, the allowance is adjusted for the amount of the write-off, reducing the total amount of receivables and the estimated allowance by the same amount. Therefore, the cash realizable value of receivables remains the same before and after an account has been written off.

Under the Allowance Method, the Cash Realizable Value of Receivables