On January 1, Year 2, the Accounts Receivable balance was $33,800 and the balance in the Allowance for Doubtful Accounts was $4,300. On January 15, Year 2, an $1,250 uncollectible account was written-off. The net realizable value of accounts receivable immediately after the write-off is:

$29,500

Explanation:

When sales are made on credit/account, entries required are

Debit Accounts receivables

Credit Revenue

where the company estimates that part of the receivables may be incollectible,

Debit Bad debts expense

Credit Allowance for doubtful debt

Where the debts then go bad, to write them off,

Debit Allowance for doubtful debt

Credit Accounts receivable

The amount written off is posted the entries posted are between the allowance for doubtful debt and accounts receivable. Hence, the write off would not change the net receivables

As such,

= $33,800 - $4,300

= $29,500

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c.

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