An entry to write off an uncollectible account does not change the net realizable value (book value)of trade receivables.

Question

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Writing off an uncollectible account only affects the allowance for doubtful accounts and the balance sheet presentation of accounts receivable. It does not change the net realizable value (book value) of trade receivables, because that value is calculated as the total amount of receivables minus the allowance for doubtful accounts. Writing off an uncollectible account decreases the allowance and decreases accounts receivable by the same amount, leaving the net realizable value unchanged.

An Entry to Write Off an Uncollectible Account Does Not