During the year, kiner company made an entry to write off a $32,000 uncollectible account. before this entry was made, the balance in accounts receivable was $400,000 and the balance in the allowance account was $36,000. the net realizable value of accounts receivable after the write-off entry was

balance in bills receivables account = $364000

Explanation:

given data

write off =  $32000

balance in accounts receivable = $400000

balance in allowance account = $36000

to find out

net realizable value of accounts receivable

solution

we first find credit balance in allowance that is

credit balance in allowance = $36000 - $32000

credit balance in allowance = $4000

and

so here balance in bills receivables account is

balance in bills receivables account =  ( $400000 - $32000 ) - ( $36000 - $32000 )

balance in bills receivables account = $368000 - $4000

balance in bills receivables account = $364000