On January 1, the accounts receivable balance for Benford Company was $7,000 and the balance in the allowance for doubtful accounts was $700. On that day, a $300 uncollectible account was written-off.
The net realizable value of accounts receivable immediately after the write-off is:

Question

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The net realizable value of accounts receivable is the amount of accounts receivable that is expected to be collected. To calculate the net realizable value, we start with the accounts receivable balance and then subtract the allowance for doubtful accounts. In this case, the accounts receivable balance is $7,000 and the allowance for doubtful accounts is $700, so the net realizable value is $6,300.

On January 1, the Accounts Receivable Balance for Benford Company