Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 18)
How does the write-off of an uncollectible account affect the net realizable value of accounts receivable?
Increases the net realizable value.
Decreases the net realizable value.
Has no effect on the net realizable value.
Eliminates the net realizable value.
Explanation
Write-offs are already accounted for in the Allowance for Doubtful Accounts, and do not change the net realizable value.
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