Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as worthless an account receivable from Burton Company of $1,300. The net realizable value of the accounts receivable before and after the write-off were:

Net realizable value before write off and after write off remains the same. since the write off is recorded as a debit to uncollectible account and credit to accounts receivables account. The net realizable value is  $ 290,500.

Explanation:

Net Realizable value before write off =

Accounts Receivable - Allowance for doubtful accounts

$ 310,000 - $ 19,500   = $ 290,500

The recording for the write off is

Allowance for doubtful accounts  Debit              $ 1,300

Accounts receivables                     Credit                               $ 1,300

Balances after write off are

Accounts Receivable                         $ 310,000 - $ 1,300  = $ 308,700

Allowance for doubtful accounts      $ 19.500- $ 1,300  =     $   18,200

Net realizable value after write off is                                      $ 290,500

There is no change in the net realizable value of receivables

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself

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