Question

Charleston, Inc. has Accounts Receivable of $270,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer account balance of $1,700, what is the amount of its net accounts receivable?

Answer 1

Answer:

$253,000

Explanation:

Data provided

Accounts receivable = $270,000

Allowance for Doubtful Accounts = $17,000

The computation of net accounts receivable is shown below:-

Net Accounts receivable = Accounts receivable - Allowance for Doubtful Accounts

= $270,000 - $17,000

= $253,000

Note:- There will be no impact on write off amount on the net accounts receivable as its already included in allowance for Doubtful Accounts.