On January 1, Year 1, the Accounts Receivable balance was $32,900 and the balance in the Allowance for Doubtful Accounts was $4,100. On January 15, Year 1, an $1,210 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off

$28,800

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

When the write off is done,

The Accounts Receivable balance = $32,900 - $1,210

= $31,690

Th allowance for doubtful debt account = $4,100 - $1,210

= $2,890

the net realizable value of accounts receivable immediately after the write-off is the difference between the accounts receivable and the allowance for doubtful debt account after writeoff

= $31,690 - $2,890

= $28,800

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