Question: J. B. Bucks owns a department store that has a $45,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Bad Debts.

J. B. Bucks owns a department store that has a $45,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Bad Debts.

1. Determine the net realizable value of the accounts receivable.

2. Assume that an account receivable in the amount of $400 was written off using the allowance method. Determine the net realizable value of the accounts receivable after the write-off.

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