Acompany that uses the allowance method, writesminusoff a receivable of $ 6 comma 000. prior to the journal entry, the credit balance in the allowance for uncollectible accounts was $ 19 comma 432 and accounts receivable were $ 2 comma 005 comma 000. after the entry to writeminusoff the receivable is made, the net realizable value of accounts receivable will be:

The net realizable value of Accounts Receivable = 1,985,538

Explanation:

The journal entry will be: Allowance for Uncollectible Accounts (Debit - Decreased) 6,000 and Accounts Receivable (Credit - Decreased) 6,000.

After the journal entry the credit balance in the Allowance for Uncollectible Accounts will be: 2,005,000 - 6000 = 1,999,000, and the debit balance in Allowance for Uncollectible Accounts will be: 19,462 - 6,000 = 13,462.

Then net realizable value of Accounts Receivable will be: 1,999,000 - 13,462 = 1,985,538.

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