These are the balances for Johnson Co at 12 December: Accounts Receiv able $\quad \$ 23,452$
Allowance for Doubtful Debts $\quad 1,252 \quad \$ 22,200$ If an account for $300 is written off on 15 December what is the estimated realisable value of Accounts Receivable after the write-off? Ignore any GST adjustment for the purposes of this question.

Question

Quizplus · Accepted Answer

The estimated realizable value of Accounts Receivable is calculated by subtracting the Allowance for Doubtful Debts from the Accounts Receivable balance. After writing off $300, the Accounts Receivable balance becomes $23,152 ($23,452 - $300). The Allowance for Doubtful Debts remains $1,252. Thus, the realizable value is $23,152 - $1,252 = $21,900, which is closest to $22,200.

These Are the Balances for Johnson Co at 12 December $23,452\quad \$ 23,452$23,452

These Are the Balances for Johnson Co at 12 December $\quad \$ 23,452$