On January 1, Year 1, the Accounts Receivable balance was $37,000 and the balance in the Allowance for Doubtful Accounts was $2,800. On January 15, Year 1, an $800 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off?

The net realizable value of accounts receivable immediately after the write-off  is $33,400

Explanation:

Net realizable value of accounts receivable is the Amount that the Company expects to receive from its Account Receivables after accounting for Debts Written Off and Allowances for Doubtful debts

Net realizable value of accounts receivable:

Accounts Receivable                                         $37,000

Less Uncollectible accounts written-off              ($800)

Less Allowance for Doubtful Accounts            ($2,800)

Net realizable value of accounts receivable   $33,400

$33,400

Explanation:

Accounts Receivable   $37,000

Less: uncollectible accounts written off (800)                      

Allowance for Doubtful Accounts   ($2,800)

Net realizable value of accounts receivable   $33,400

Therefore the net realizable value of accounts receivable immediately after the write-off is $33,400

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