Question: With the allowance method, why is the net balance, or net realizable value, of Accounts Receivable the same after the write-off of a receivable as

With the allowance method, why is the net balance, or net realizable value, of the same after the write-off of a receivable as it was prior to the write-off of the uncollectible account?

Step by Step Solution

★★★★★

3.37 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The net balance of Accounts Receivable does not ch... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

75-B-A-C-R (582).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

How would the net realizable value of Accounts Receivable change when an account is written off under the allowance method?

Why isn't the direct write off method of uncollectible accounts receivable the preferred method?

The balance of accounts receivable is $275,000. The allowance for uncollectible accounts has a credit balance of $240. Net credit sales for the year were $771,000 and cash sales were $68,000....

With the allowance method, why is the net balance, or net realizable value, of Accounts Receivable the same after the write - off of a receivable as it was prior to the write - off of the...

Why is the net balance, or net realizable value, of accounts receivable the same after the write-off of a receivable as it was prior to the write-off of the uncollectible account?

15. Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable is greater before an account is written off than after it is written off Bad...

Al Jazeera steel company's unadjusted trial balance as on December 31, 2019 shows the following balances: Accounts receivable on December 31, 2019 OMR 2,320,000 Sales revenue, for the year 2019 (60%...

A contra asset represents A. an account such as Allowance for Doubtful Accounts which reflects a decline in the net realizable value of accounts receivable. B. an account that is presented as a...

New Rom Styles 0.- * A-P-A- Paragraph Section B Director: Complete each of the following statements by writing in the Answers colonn the letter of the word or words that correctly completes each...

Brockman Variety Store had the following balances as of November 1: Requirements 1. Record Brockman's November transactions, including the cost of goods sold entries for each sale. 2. Calculate the...

Blue Navy Limited produces three products. Recently, one of its suppliers has suffered from shortages of raw material. The details are as follows: - Ivory Mink Ambergris per unit per unit per unit...

Let R = [a, b] Ã [c, d] be a rectangle in R2. A function f is said to have separated variables if for some scalars ck and functions fk C[a, b], gk C[c, d]. Prove that given f C(R) there is a...

2 : The piece of legislation whose purpose is to reduce the volatility in financial markets is most likely the: Investment Company Act of 1 9 4 0 . 3 : Financial Services Modernization Act of 1 9 9 9...

12. In each of the following cases, would the mean or the median probably be higher, or would they be about equal? a. Salaries in a company employing 100 factory workers and 2 highly paid executives....

Expert Garage pays $128,000 rent each year for its two-story building. The space in this building is occupied by five departments as specified here. Paint department . . . . . . . . . . . 1,200...

Off-Road Cycle Shop has two service departments (advertising and administration) and two operating departments (cycles and clothing). During 2009, the departments had the following direct expenses...

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Haston Bookstore. It reports the total amounts of direct and indirect expenses allocated to...

Question Set 2: Simple Linear Regression This question set will use the Gentoo.csv file, which can be downloaded from the Canvas page where you downloaded this lab document. This is a subset of the...

Explain why each of the following names does or does not seem like a good variable name to represent a state sales tax rate. moneyCharged Answer 1 Choose... 1 TaxRate Answer 2 Choose... t Answer 3...

1. (a) Show how a missing variable might explain why the slope of the simple estimated CAPM is steeper than the theoretical CAPM would suggest. [15 marks] (b) Which anomalies in equity market pricing...